European Central Bank president Jean-Claude Trichet today called for the Chinese yuan to be allowed to appreciate to help correct global current account imbalances.
"In emerging economies with large and growing current account surpluses, especially China, it is desirable that their effective exchange rates move so that necessary adjustments occur," he said in an interview with Russian newspaper Izvestia.
European Central Bank president Jean-Claude Trichet
"Concerning the dollar, I have noted with great attention that the US authorities have reaffirmed that a strong dollar is in the interest of the US economy," he added.
Mr Trichet stuck closely to the message on exchange rates that he has delivered several times over the past few weeks, and which echoes the agreed language of G7 finance ministers and central bank governors.
"Exchange rates should reflect economic fundamentals and excess volatility and disorderly movements in exchange rates are undesirable for economic growth," he said.
He said the G10 group of central bankers regularly "look at the best ways to prevent a disorderly unwinding of global imbalances and to pave the way for an orderly and smooth reduction of these global imbalances".