The Great Debate (India)

India at G20: Will yuan revaluation overshadow talks?


As India heads to Canada for the weekend G20 summit, the grouping’s agenda is expected largely to be dominated by China’s currency reforms and the global economic recovery.

An employee counts yuan banknotes at a bank in Huaibei, Anhui province June 22, 2010. REUTERS/Stringer

The United States, a major trading partner of China, has been cautious in its criticism of Beijing’s tight currency controls.

U.S. Treasury Secretary Timothy Geithner in April delayed a decision on whether to name China a currency manipulator in favour of bringing in pressure on Beijing at larger global forums such as the G20.

China’s central bank recently pledged to increase currency flexibility after pegging the yuan to the U.S. dollar for nearly two years.