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UPDATE 1-Germany sees no currency summit planned in China

Published 10/19/2009, 10:42 AM
Updated 10/19/2009, 10:45 AM

(Adds background, detail)

BERLIN, Oct 19 (Reuters) - Germany said on Monday it was not aware of plans for a summit to discuss foreign exchange rates in China after a German newspaper said top European officials wanted a meeting to pressure Beijing to let the yuan rise.

Eurogroup Chairman Jean-Claude Juncker said on Friday evening that he would visit China with European Central Bank President Jean-Claude Trichet and EU Economic Affairs Commissioner Joaquin Almunia before the end of the year.

Monday's edition of Financial Times Deutschland said the three would be heading there for a "currency summit", but a spokeswoman for the German finance ministry played that down.

Chancellor Angela Merkel's spokesman Ulrich Wilhelm did likewise, saying he was unaware of any summit.

The three officials visited Beijing for talks in late 2007, saying then that China could be moving towards a stronger exchange rate for the yuan long advocated by Europe and the United States to help reduce global economic imbalances.

The euro is at 14-month highs against the dollar at over $1.49, having risen by about a fifth since the start of the year. The euro has appreciated by the same amount against the Chinese yuan, which is virtually pegged to the dollar.

This has sparked concern among some European companies that exchange rates could make it harder for them to compete.

Speaking in Luxembourg on Friday, Juncker said he was not too concerned by exchange rates for now.

"But if it continues in the way it started weeks ago, I could become concerned at a certain junction. Don't ask me where that junction is located exactly," Juncker said. (Reporting by Gernot Heller; Writing by Noah Barkin; Editing by Andy Bruce)

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