Cracks Form in G-7 View on Yuan Path to Reserve-Currency Status
- As U.S. puts onus on China, Europeans sound more welcoming
- Xi's visit gives China chance to press case with Obama
U.S. and Chinese national flags fly outside a company building in the China (Shanghai) Pilot Free Trade Zone's Waigaoqiao free trade zone and logistics park in Shanghai, China, on Tuesday, Oct. 22, 2013.
Photographer: Tomohiro Ohsumi/BloombergGroup of Seven countries started out with a tough-love approach to China’s pursuit of reserve-currency status for the yuan: Take the difficult steps, and we’ll support you. As the decision nears, the united front may be softening.
The International Monetary Fund is reviewing whether the yuan should be included in its Special Drawing Rights, a basket of reserve currencies used by the fund as a unit of account. While many analysts have predicted approval, a unified G-7 would have the power to block inclusion, denying China the global prestige of standing alongside the dollar and euro in the basket.