Foreign exchange rate issues will play a role at the Group of Seven talks this coming weekend in Washington, an official of the German Ministry of Finance said Tuesday. However, the official added that he doesn't expect any surprises at the G7 forex talks.
"This will play as usual, but I wouldn't expect any surprises," he told reporters at a briefing ahead of the talks. The official declined to be identified. The meeting, which will take place on the sidelines of the International Monetary Fund and World Bank spring meeting in Washington, was organized by the U.S. Treasury and the German government. The high-ranking German finance ministry official added that China's foreign exchange rate regime system "has become slightly more flexible" but "further steps are needed." Last week, China's central bank announced a 50-basis-point rise in its reserve requirement ratio. The move was the third such increase this year and will take effect April 16. The latest hike raises the ratio for most commercial banks to 10.5%.
hina has been invited to attend the G7 surveillance talks on the state of the global economy but the country's finance minister and central bank head have said they can't attend the meeting in Washington as domestic issues require their presence in China, the German official said.