The world’s leading economies set aside concerns about China’s currency for now as Europe’s debt crisis took centre stage at a Group of 20 meeting in Paris.
G-20 finance ministers and central bankers refrained from ratcheting up their language on exchange rates in a statement yesterday, sticking to the line that they should be “market determined.” Chinese deputy finance minister Zhu Guangyao welcomed the statement, saying in an interview that its description of the currency issue was “comprehensive and balanced.”
China, which has been criticized for not allowing the yuan to appreciate more, said the current priority is fixing Europe’s debt crisis. The U.S. on Oct. 14 postponed a report on the exchange-rate policies of its trading partners, including China, until after global meetings scheduled for this month and next.
“We reiterate that excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability,” the G-20 statement said, repeating a mantra last expressed on Sept. 23.
Japan’s concerns about excessive currency movements were reflected in the G-20 statement, Japanese Finance Minister Jun Azumi said yesterday. Bank of Japan Governor Masaaki Shirakawa said on Oct. 14 that global uncertainties are driving up the yen and urged European nations to tackle their debt problems swiftly.
Posted by mohdarafat 
