ECB President Lagarde urges G7 talks on yuan undervaluation

European Central Bank President Christine Lagarde called on Monday for global leaders, particularly G7 nations, to discuss the undervaluation of the Chinese yuan as part of broader economic imbalances threatening the global economy. Speaking at an event in Brussels, Lagarde emphasized that China's large trade surpluses and currency practices justify further discussions among G7 leaders. She noted that Europe has struggled to compete with China in sectors like high-end cars, partly due to cheaper Chinese goods. However, Lagarde dismissed the idea of a new Plaza Accord to strengthen the yuan, arguing that the 1985 deal to weaken the dollar was made under different circumstances. China has denied manipulating its currency for trade advantage.