Revaluation of the yuan, along with high oil prices, deceleration of the U.S. economy, and the euro's rise against the, yen was among the major topics discussed at the Group of Seven finance ministers' meeting in Singapore over the weekend.
The yuan issue has been getting more frequent attention because Chinese authorities have failed to liberalize trade in the currency fast enough — even though the quickly growing nation continues to sharply increase its foreign currency reserves.
Yuan trade is effectively limited to the Shanghai market, where participation is restricted, while operations controlled by Chinese financial authorities to prevent the yuan from appreciating have resulted in the rapid accumulation of forex reserves.