| G7 urge more flexibility currency Original Source Link: (May no longer be active) http://www.forbes.com/home_europe/newswire/2003/09/20/rtr1087110.htmlhttp://www.forbes.com/home_europe/newswire/2003/09/20/rtr1087110.html
G7 urges more flexible currencies driven by market Reuters, 09.20.03, 10:48 AM ET
DUBAI, Sept 20 (Reuters) - The Group of Seven industrial nations took aim on Saturday at Asian governments that keep a tight grip on their currencies by calling for more exchange rate flexibility to help iron out global economic imbalances.
The communique appeared to mark a victory for the United States, which has criticised China, Japan and other Asian nations for holding down their currencies, thus making it harder for U.S. exporters to compete in world markets.
"We reaffirm that exchange rates should reflect economic fundamentals. We continue to monitor exchange markets closely and cooperate as appropriate," finance ministers and central bank governors from the United States, Japan, Germany, France, Britain, Italy and Canada said.
"In this context, we emphasise that more flexibility in exchange rates is desirable for major countries or economic areas to promote smooth and widespread adjustments in the international financial system, based on market mechanisms," the communique added.
The G7 met in Dubai on the sidelines of the annual meeting of the 184-member International Monetary Fund and the World Bank.
Copyright 2003, Reuters News Service
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