NANJING, China (Reuters) - Tightly controlled exchange rate regimes are the main flaw in the international monetary system and the solution is simple, U.S. Treasury Secretary Timothy Geithner told a G20 meeting on Thursday.
Reuters - Tightly controlled exchange rate regimes are the main flaw in the international monetary system and the solution is simple, U.S. Treasury Secretary Timothy Geithner told a G20 meeting on Thursday.
Group of 20 nations will affirm a commitment to avoid weakening their currencies to gain a trade advantage, according to a draft statement prepared for a meeting this week in Washington, Bloomberg BNA reported.
The statement, seen by a Bloomberg BNA reporter, maintains a February pledge to “move more rapidly toward more market-determined exchange rate systems and exchange-rate flexibility” and to refrain from competitive devaluations. Meetings of finance ministers and central bankers start Thursday.
Japan’s monetary stance has seen a big decline in the yen, while the euro has risen against a basket of currencies, reports The BBC.
The value of a country’s currency has a big impact on its trade and there are fears nations may try to influence markets to help boost their economies.
The G20 has previously asked nations to refrain from market intervention.
NANJING, China (Reuters) - Opposing views about how to reform the global monetary system were laid bare at a meeting of the top 20 economies on Thursday, with France setting out a bold agenda, China warning that change must be gradual and the United States saying the solution was simple.
By Peter Boone and Simon Johnson. This is a long post, about 3,500 words.
In 2003 the International Monetary Fund published yet another internal review with an impressively dull title “The IMF and Argentina, 1991-2001”. But hidden in that text is explosive language and great clarity of thought – in essence, the IMF staff belatedly recognized that their decision to repeatedly bailout Argentina from the mid-1990s through 2002 was wrong:
Ministers and bankers from the G20 nations are to meet in China Thursday to discuss challenges facing the global monetary system, with talks likely to centre on destabilising capital flows.French President Nicolas Sarkozy and Chinese Vice Premier Wang Qishan will open the one-day meeting of finance ministers and central bank chiefs from the Group of 20 leading economies in the eastern Chinese city of Nanjing.