Merz Urges Global FX Talks Over 30% Undervalued Currencies and EU-China Trade Gap

3 articles · Updated · Bloomberg · Jun 19

Friedrich Merz called for international exchange-rate talks, saying the EU should tackle currency distortions as it confronts a widening trade deficit with China.
Up to 30% undervaluation in some countries' currencies is skewing competition, Merz said, in a clear reference to concerns that a weak yuan is boosting Chinese export competitiveness.
The German chancellor said he had already raised the issue at this week's G7 meeting, signaling he wants the exchange-rate debate folded into a broader Western response on trade.
The push reflects rising EU anxiety over Chinese imports and suggests Brussels may widen its focus from tariffs and industrial policy to currency policy.

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