G7 statement applauds China FX moves, sees yuan gains

LONDON (Reuters) - The G7 group of industrialized nations welcomes China's commitment to a more flexible exchange rate, which should lead to a stronger yuan currency, the draft statement from this weekend's meeting said.

The draft communique, seen by Reuters, made no reference to specific currencies other than China's yuan.

"We welcome China's fiscal measures and continued commitment to move to a more flexible exchange rate, which should lead to continued appreciation of the Renminbi (yuan) in effective terms," the statement said.

"Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We continue to monitor exchange rate markets closely, and cooperate as appropriate."