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10/24/10

France; Sarkozy gambles on China in G20 forex drive - by Paul Taylor

Sarkozy has put reforming the international monetary system at the top of his agenda at a time when all the world's major economies are tempted to let their currencies depreciate in an attempt to rekindle export-led economic growth. The United States accuses China of keeping its currency, the yuan, artificially low, hurting U.S. jobs and competitiveness.

If Sarkozy can persuade Beijing to engage in foreign exchange policy coordination in a G20 setting, he would pocket a political success that could boost his expected 2012 re-election bid and upstage his most dangerous potential challenger, IMF Managing Director Dominique Strauss-Kahn.

Some G20 diplomats say the fact that the president went public with the idea suggests he already has an indication of Chinese acceptance, which might be announced when President Hu Jintao visits Paris in November.

 
For more: Analysis: Sarkozy gambles on China in G20 forex drive | Reuters

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