Japan's Kan says fair to discuss yuan at G-20

“It would be fair to discuss the Chinese currency at the G-20 meeting” rather than at G-7 because China isn't a member of the latter group, Kan told reporters in Tokyo before traveling to the gathering in the northern city of Iqaluit.

Kan's comments reinforce a message delivered from the Japanese Finance Ministry last month that the country isn't seeking to put the yuan's peg to the dollar on the G-7 agenda. At the same time, Kan said he and Bank of Japan Governor Masaaki Shirakawa may be asked about the Chinese economy.

Canadian Finance Minister Jim Flaherty has repeatedly said Asian currencies will be on the agenda. U.S. Treasury Secretary Timothy F. Geithner said Thursday that Chinese officials realize a more flexible exchange rate is in their economy's best interest, and he indicated that such a shift is “likely.”

China has kept its currency pegged to the dollar since July 2008 to help its exporters, rebuffing calls from European and U.S. officials for it to appreciate. The Chinese economy grew at the fastest pace since 2007 last quarter and is set to overtake Japan's as the second largest this year.

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