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G7 urges China to revalue its currency, warns on oil

The world's seven most powerful economies said on Friday that it was "critical" for China to revalue its currency and warned that record oil prices risk slowing global growth.

In a statement issued after a day of talks, the finance ministers of the UK, Canada, France, Germany, Italy, Japan and the US said the world economy's outlook was "favorable" as it enters a fourth year of growth.

"Yet risks remain from oil market developments, global imbalances and growing protectionism. We underscored that global economic adjustment is a shared responsibility," the G7 ministers said.

Meeting as oil prices in New York surpassed US$75 a barrel for the first time, the officials called for greater investment in oil consuming and producing countries, and for more conservation and energy efficiency.

They issued their statement before heading into dinner talks with China and crude producers Russia, Saudi Arabia and the United Arab Emirates.

Among the potentially dangerous global imbalances they identi-fied were the massive trade surplus being run up by China -- which Beijing's critics argue is the product of a distorted currency regime.

Also see story:
Asia needs greater say, G7 warns IMF

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