European Central Bank’s President Lagarde urges talks on yuan undervaluation (opens original article in a new tab)

ECB President Lagarde called for discussions on the undervaluation of the Chinese yuan, citing IMF research, while dismissing a new Plaza Accord.

• European Central Bank President Christine Lagarde urged global leaders to discuss the undervaluation of the Chinese yuan.
• China denies currency manipulation, but trade surpluses and macroeconomic imbalances are concerns for G7 nations.
• Lagarde cited IMF research indicating the yuan was 15-16% undervalued but dismissed a new Plaza Accord for strengthening the currency.