G20 Leaders Agree to Refrain from ‘Currency Devaluation’
source: http://www.theblogismine.com/2010/11/12/g20-leaders-agree-to-refrain-from-currency-devaluation/
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G20 leaders refused to endorse the U.S. push to get China to let its currency rise, keeping alive a dispute that has raised the spectre of a global trade war.
The leaders of the Group of 20 rich and developing economies — including the U.S. President Barack Obama and China’s Hu Jintao — issued a watered-down statement that only said they agreed to refrain from “competitive devaluation” of currencies.
At the end of their two-day G20 Seoul Summit, such a statement is of little consequence since countries usually only devalue their currencies in extreme situations like a severe financial crisis.
The real dispute is over Washington’s allegations that Beijing resorts to “competitive undervaluation” — artificially keeping its currency, the yuan, weak to gain a trade advantage. However, the US position itself has been undermined by its own recent policy of printing money to boost a sluggish economy, which is weakening the dollar.
The joint statement avoided the words “competitive undervaluation”, which was a reference to China’s currency policy that had been inserted into a draft of the statement by officials during pre-summit negotiations.
http://www.theblogismine.com/2010/11/12/g20-leaders-agree-to-refrain-from-curren...
The leaders of the Group of 20 rich and developing economies — including the U.S. President Barack Obama and China’s Hu Jintao — issued a watered-down statement that only said they agreed to refrain from “competitive devaluation” of currencies.
At the end of their two-day G20 Seoul Summit, such a statement is of little consequence since countries usually only devalue their currencies in extreme situations like a severe financial crisis.
The real dispute is over Washington’s allegations that Beijing resorts to “competitive undervaluation” — artificially keeping its currency, the yuan, weak to gain a trade advantage. However, the US position itself has been undermined by its own recent policy of printing money to boost a sluggish economy, which is weakening the dollar.
The joint statement avoided the words “competitive undervaluation”, which was a reference to China’s currency policy that had been inserted into a draft of the statement by officials during pre-summit negotiations.
http://www.theblogismine.com/2010/11/12/g20-leaders-agree-to-refrain-from-curren...
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- Barack Obama, G20, Hu Jintao, currency devaluation, 6 more
