China currency policy discussed, but no change announced

Recognizing the rapid growth of the Chinese economy--and the dependence of the entire world on the cheap goods produced there--the world's seven richest nations finally invited China to lunch. The G7 invited China's finance minister and central bank minister to discuss global macroeconomic outlooks, and of course to apply more pressure on the Asian giant to float its currency. The Yuan has been pegged at 8.28 to the dollar since 1995, yet during this time the Chinese economy has grown more than 10 percent each year. While the Chinese accept the idea of a market-based exchange rate in principal, their current policy has so many benefits for the export-based economy that party officials are reluctant to part with it. Nonetheless, as the country's leaders work towards a soft landing, a revaluation of the currency will probably be necessary. In the short term, millions importers of Chinese products will continue to hope the status quo can last.