ANALYSIS - Emerging nations taking up baton on China's yuan

By Axel Bugge and Sujata Rao

LONDON (Reuters) - Emerging economies, smarting under rampant currency appreciation that is hindering their efforts to export their way to recovery, are finally daring to join a chorus of protests against China's weak yuan.

Complaints about China's currency usually come from the world's rich nations but at last week's G20 meeting, there were signs developing states, Beijing's allies on issues like climate change and IMF reform, may also be starting to turn on it.

Brazil's finance minister Guido Mantega -- part of the "BRIC" group that also includes Russia, China and India -- said he wanted to bring up the disparity between fixed and floating exchange rates at the G20. A source in his department was more blunt -- saying China's managed rate regime gave it too much of a competitive edge when it comes to exports.

"What is a concern is China's fixed exchange rate," the Brazil source told Reuters at the meeting of the Group's finance ministers and central bankers. "The whole problem is China."

"Either all countries should have a fixed exchange rate or all should have a floating exchange rate."

But more public criticism may not make much difference.

The United States and other major Western powers have toned down the public pressure on the Chinese this year -- partly because they believe Beijing gets more, not less, obstinate in the face of external pressure.

Chinese Finance Minister Xie Xuren shrugged off the noises from the Brazilians and others this weekend, rather pointing to the need for other major economies to work to maintain their currencies' value to avoid destabilising the world economy.