A 100 yuan banknote (R) is placed next to a $100 banknote in this picture illustration taken in Beijing in this November 7, 2010 file photo. – Reuters (File Photo)

VIENTIANE: French President Francois Hollande on Monday criticised the inflexibility of the Chinese yuan and certain other Asian currencies during a high-profile visit to the region aimed at boosting economic ties.

“Some Asian countries, notably China, have currencies that are not convertible,” he told reporters on the sidelines of an Asia-Europe summit in Laos.

“We have to push for reform of the international banking sector so we can have more balanced exchange rates,” he added.

Western nations frequently criticise Beijing's tight grip on the yuan, arguing that it gives the Asian giant an unfair trade advantage.

“We have to be competitive but that requires fair exchange rates, meaning that there is no unfair competition,” Hollande said.

“France has to make efforts to be competitive but at the same time Asia must also understand that we have to rebalance our trade.”

He said France “cannot accept” its 27-billion-euro ($35 billion) annual trade deficit with China, noting it was almost 40 percent of the country's total trade shortfall.

Hollande and other Asian leaders arrived in Laos on Monday on a mission to reassure Asia they are finally getting a grip on the eurozone debt crisis.

The diplomatic offensive is seen as a sign of the growing importance that Europe places on Asia's vibrant economies, and its desire to counter increased US engagement in the region.

More From This Section

3G, 4G may triple internet cost for users

Post-paid and corporate customers are expected to be offered next-generation services first.

Investors fearful of intervention: Dr Ishrat

Fear of suo motu intervention by SC, high courts in financial transactions had helped elevate Pakistan's risk profile.

Sindh millers raise flour prices

The rate of flour has been raised to Rs38 per kg from Rs37 per kg, and the prices may go up further in the coming days.

Dar’s statement helps dollar gain 1pc

Dar’s statement that the dollar will be kept around Rs98 to support the export industry created panic-like situation.


Comments are closed.
Explore: Indian elections 2014
Explore: Indian elections 2014
How much do you know about Indian Elections?
How much do you know about Indian Elections?
Poll
From The Newspaper
Tweets