View Full Version : War currencies top twenty meetings

10-23-2010, 09:13 AM

War currencies top twenty meetings

Group of twenty-looking reforms in the system of the International Monetary Fund

Began to finance ministers and central bankers in the Group of Twenty Friday Gyongjo their meetings in South Korea to discuss the status of the international economy amid expectations that controlled the issue of currency exchange rates or what has become known as a "war of currencies" on the discussions.

The meetings, which began today is a prelude to the summit meeting of the twenty-assessed in 11 and November 12 in the capital, South Korea Seoul, which will consider new rules to reduce risk in the global banking system, and reforms in the IMF to strengthen the position of emerging countries.

The draft final statement of the Ministerial Meeting that the States undertake to twenty to "refrain from any reduction in the price of their currencies competitive."

Andthe strategy of reducing the prices of currencies to manipulate exchange rates to stimulate the economy even at the expense of international cooperation.

According to the draft also states that the twenty "is going to a system where the market determine the price of exchange."

China - which did not come to call the statement - is facing increasing pressure from its trading partners, led by the United States to force it to raise the price of its currency against the dollar at a faster pace than you are now.

"War of currencies" the issue of concern to the global economy (Reuters)
U.S. consumption
Prior to the meetings called U.S. Treasury Secretary Timothy Geithner counterparts in the group to the "rebalancing" of the global economy by working to reduce reliance on U.S. consumption.

In an interview with the Wall Street Journal said he would propose the rules of fair exchange rates.

The minister urged the countries that are U.S. trade balance surplus in the reform of monetary policy in order to preserve global growth, in a letter addressed to the Group of Twenty.

Geithner also urged the group's member states to work to reduce the surplus or deficit to a certain percentage of the GDP in the coming years.

He called on States which recorded a large deficit to stimulate national saving through the adoption of "the goals of tax and credible medium-term" and to increase their exports.

It said that the countries that recorded a surplus continued to carry out structural reforms, fiscal and exchange rate at the level of its currency to strengthen the resources of internal growth and to support global demand.

A march in support
Unusually, in such meetings, activists organized South Korean conservatives march in the heart of Seoul in support of the Summit Group of Twenty. In the view of these activists to embrace their country to the summit is a national celebration, and that he should succeed.

I usually see this kind of major economic summits popular protests in which anti-globalization activists http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&sl=ar&tl=en&u=http://www.aljazeera.net/NR/exeres/7D97568B-71B8-4BEE-92A9-0376779FBB4D.htm%3FGoogleStatID%3D24