China to take new steps on currency

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CANNES, France (CNNMoney) -- China will make new commitments on its exchange rate policy Friday as part of the official Group of 20 communiqué, according to a U.S. official close to the matter.

"There will be some slightly new language on China and the exchange rate," the official said, adding that the move "will not be the be-all-end-all."

The United States has been pushing China to move toward a "market-based" exchange rate for its currency, the yuan, since at least 2008.

"This is an issue that has involved a lot of hard work on our part," the official said.

China has allowed its currency to appreciate somewhat, but many economists say it remains significantly undervalued.

China isn't the only currency 'manipulator'

Critics say China manipulates its currency to give its export-driven economy an advantage in global trade. China has argued that its currency policy is necessary to maintain "social stability."

The official said Beijing will not promise to move its currency peg a certain amount within a specified time frame. But the nation will "commit to take a step forward to move more rapidly toward a market-based exchange rate."

The currency issue is one of many economic issues the G20 are discussing here in Cannes, France. But the summit has been dominated by concerns about the debt crisis in Europe.

"Europe is obviously at the center of the discussions," the official said. "But some productive things have happened on larger economic issues."

The G20 is focused on ways to rebalance the global economy by encouraging nations with large surpluses, such as China, to increase domestic consumption. At the same time, the leaders are working to strengthen economic growth in developed nations by taking steps to increase employment.