China prizes G7 prestige despite currency pressure

From Stuff.co.nz:

BEIJING: China heads to the Group of Seven meeting of financial ministers in London this week knowing it will come under pressure from rich nations to liberalise its currency. But it probably won't mind.

For Beijing, analysts say the prestige of sitting at the table with the world's wealthiest nations will be worth the pressure - however diplomatically worded - it is sure to feel over the yuan's fixed exchange rate.

"It probably wants the recognition that it is a player in global markets and recognition of its importance in global trade and financial markets," said Ben Simpfendorfer, a JP Morgan economist in Hong Kong.

Chinese Finance Minister Jin Renqing and central bank chief Zhou Xiaochuan are expected to reiterate that Beijing will move only gradually to liberalise the yuan, also known as the renminbi, which is now pegged at about 8.28 to the US dollar.