"We supported the strengthening of IMF surveillance, including through increased emphasis on the consistency of exchange rate policies with domestic policies and a market-based international monetary system and on the spillover effects of domestic policies on other countries," the G7 ministers said.
"Greater exchange rate flexibility is desirable in emerging economies with large current account surpluses, especially China, for necessary adjustment to occur," their statement read.
The G7 communique was the powerful club's most forceful yet on the need for China and other Asian economies to play their role in rectifying the global imbalances.
"It's natural, since China is such a huge part of the global economy, it should be a focal point," US Treasury Secretary John Snow told a news conference.
French Finance Minister Thierry Breton identified Japan and Malaysia as other countries that need to change their currency behavior.
"I'm convinced that the Japanese authorities will let the markets freely set the value of their currency," he said, after repeated accusations by some Western companies that Tokyo is putting a lid on the yen.
The G7 ministers said: "In emerging Asia, particularly China, greater flexibility in exchange rates is critical to allow necessary appreciations, as is strengthening domestic demand, lessening reliance on export-led growth strategies, and actions to strengthen financial sectors."
Chinese President Hu Jintao (
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