(PTI): The G7 has warned against currency volatility, stressing the importance of a strong dollar and a flexible yuan exchange rate.

“We have reaffirmed the necessity for the Chinese currency to appreciate … and we continue to believe that we need a strong dollar,” French Finance Minister Christine Lagarde said after the talks in Istanbul on Saturday.

In a joint statement, the G7 finance ministers also said that there were “signs of a global economic recovery” but added that there was “no room for complacency” and that fiscal stimulus measures by governments would stay in place.

“Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability,” the statement said.

The G7 finance ministers and central bank governors welcomed “China’s continued commitment to move to a more flexible exchange rate, which should lead to continued appreciation of the (yuan) in effective terms and help promote more balanced growth in China and in the world economy.”

European finance ministers put pressure on the United States this week ahead of the G7 talks to defend the dollar, which has weakened considerably as a tentative global economic recovery has taken shape.