The Group of Seven (G7), leading industrial nations, has mounted pressure on China to relax control over its currency. In the recently concluded meting of finance ministers and bankers from advanced industrial countries serious concerns were raised over Chinese and Japanese currency for being undervalued that has affected international trade. G7 ministers have reiterated that China is needed to accelerate efforts to increase the exchange rate flexibility of yuan. However, the finance ministers of leading industrial countries seemed to be upbeat over the recent forecast for the global economy to grow at 5 percent this year. The further expressed their confidence in US economy to be remained solid. The ministers were also upbeat for the European economies for improving their performance. Besides everything, the Chinese yuan and the Japanese yen remained at the center stage for discussion at the meeting, held in the German city of Essen. China, which has recently overtaken Britain to become fourth largest economy of the world, attended the meeting despite not being a member of G7. Chine representative said that even the Chinese governments wants yuan to be more flexible. China is accused of manipulating its currency in order to keep it undervalued to make Chinese export artificially competitive in the international market. G7 whilw addressing concern over Chinese currency in a an official announcement said, ‘In emerging economies with large and growing current account surpluses, especially China, it is desirable that their effective exchange rates move so that necessary adjustments will occur’. Responding to this message, China’s finance minister, Jin Renqing, said that China would continue to strengthen macroeconomic adjustment. While Japan reacting to the allegation has said that yen’s current low value reflect the country’s ongoing economic revival.