Chancellor Merz has called for increased dialogue with China concerning its monetary and foreign exchange policies, highlighting concerns over the valuation of the Chinese yuan. According to FX Street, Merz stated that the yuan is currently undervalued by 20–30%, suggesting that the currency should be allowed to float more freely.
The call for engagement reflects growing attention on currency valuation and its impact on global trade balances. Rabobank’s Michael Every has also been noted in discussions around FX policy, emphasizing the importance of transparency and cooperation between major economies.
For Japanese markets, where export competitiveness and currency fluctuations are closely monitored, shifts in China’s yuan policy could influence FX dynamics and regional trade flows, making this dialogue particularly relevant for investors and policymakers alike.