"Currency has been part of these conversations. I think you will see some language in the action plan on that," said Lael Brainard, U.S. Treasury under secretary for international affairs.

"I think China is recognizing the role of greater exchange rate flexibility in helping to shift to domestic demand. It is one of the one of the most powerful instruments...that Chinese has at its disposal in the near term," she said.

She also said the U.S. banking system is better insulated now by capital to withstand the latest phase of global financial crisis.

"The United States' banking system is a lot better capitalized than it was going into the crisis," Brainard said. "The very thick capital cushions ... are a very significant insurance policy for our banks," she told reporters at the meeting of leaders of the Group of 20 major economies in Cannes.