Sept. 14 (Bloomberg) -- European Central Bank President Jean-Claude Trichet and French Finance Minister Christine Lagarde urged Asian governments to let their currencies appreciate more to close disparities in global trade.

``The yen and the yuan in particular are currencies whose level and spread pose a problem to global trade,'' Lagarde told reporters today after a meeting of euro-area finance chiefs in Oporto, Portugal. Trichet singled out China in saying it is ``desirable'' that Asian nations without floating exchange rates allow more movement in their currencies.

The concern among European officials is that, with the dollar at a record low against the euro, European exports stand to suffer if Asian currencies such as the Chinese yuan and Japanese yen don't gain more.

The calls for change come before European Union Monetary Affairs Commissioner Joaquin Almunia visits China next week for talks. While the yuan has risen against the dollar since the government ended a peg to the U.S. currency in July 2005; in the same period, the Chinese currency has declined versus the euro.

That is being reflected in trade data, with the euro region's trade gap with China expanding to 43 billion euros ($59.6 billion) in the five months through May, up 23 percent from a year earlier, according to the latest data. Updated statistics scheduled for release next week may show China surpassing the U.K. as the euro area's biggest source of goods.

Market-Based Currency

The U.S. began lobbying China five years ago and U.S. Treasury Undersecretary David H. McCormick yesterday praised France for intensifying its efforts. ``As China becomes a bigger and bigger piece of the global economy for Europe, the United States and everyone else, the focus on a market-based currency will not be just a focus for the United States,'' McCormick said. ``We welcome the growing recognition.''

Other European officials in Oporto played down the threat of the euro's climb to the economy. Belgian Finance Minister Didier Reynders said that ``it's not a problem to have a strong euro,'' while Luxembourg Prime and Finance Minister Jean-Claude Juncker said he had ``more concerns'' when the euro was weak.

To contact the reporter on this story: Sandrine Rastello in Oporto srastello@bloomberg.net; Simon Kennedy in Oporto at skennedy4@bloomberg.net.

Last Updated: September 14, 2007 10:50 EDT