G20 to take same line on forex, welcome euro crisis progress

G20 finance chiefs will authorise language on exchange rates that is no harsher than at their last meeting in Washington and will welcome progress the euro zone is making in tackling its debt crisis, a delegation source said on Saturday.

The G20 source also said China had given no indication it was prepared to change pace on greater flexibility of its yuan currency.

The communique to be released at a two-day meeting of finance ministers and central bankers in Paris will include a statement "welcoming Europe's progress", the source said.

Euro zone policymakers are trying to put flesh on the bones of a crisis resolution plan in time for a European Union summit on Oct. 23. It will involve plans to recapitalise banks, make Greek's debt mountain more sustainable and ramp up the firepower of the bloc's EFSF rescue fund.

A G20 communique released at a meeting in Washington last month talked of emerging market economies enhancing "exchange rate flexibility" and said "excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability".