G-20 Seeks Common Ground on Currencies After Yen Split

Global finance chiefs are seeking to find common ground on currencies after an effort to calm tensions between rich governments backfired. 

Group of 20 finance ministers and central bankers begin talks in Moscow today with investors seeking clarity on how comfortable they are with a sliding yen. Questions are being asked after the Group of Seven united around a pledge not to target exchange rates only to divide over its meaning for Japan. 

“We have to get to the bottom of this, of course, listen to our Japanese colleagues and how they explain this and what decisions they will take and what exchange-rate policy they will follow,” Russian Finance Minister Anton Siluanov said in an interview yesterday before hosting the meeting. He said the G-20 should adopt more “specific” language opposing exchange-rate interference in a statement to be released tomorrow. 

At stake is how much to endorse Japan’s use of fresh monetary stimulus to propel its economy from 15 years of deflation without signaling support for a weaker yen, which may hurt exporters elsewhere and prompt retaliation. The yen strengthened for a fourth day today against the dollar. 

Japan is in the spotlight after the yen tumbled about 12 percent in the past three months on the bet that new Prime Minister Shinzo Abe will pursue a campaign commitment to demand more aggressive monetary policy. That has led to concern elsewhere he’s chasing a cheaper yen, potentially triggering a so-called currency war if others do the same. 
G-20 Pledge 

In a draft of the communique dated Feb. 11 and obtained by Bloomberg News yesterday, the G-20 officials reaffirmed a pledge to “refrain from competitive devaluation.” They said monetary policy “should be directed toward domestic price stability, while continuing to support economic recovery.carbon sheets are distinguished by a significantly higher tensile strength.Visit the Best Price Auto Accessories wholesalers Secure online store for the best prices on car accessories, car covers.” 

The draft predates by one day a statement by the G-7, composed of the major industrial nations, which committed not to make exchange rates a goal of policy. Confusion then broke out as one G-7 official said it was meant as a criticism of excessive moves in the yen and Japan’s occasional willingness to guide investors on its desired value. A U.K. official then denied any country was being singled out. 

While Bank of Canada Governor Mark Carney says the G-20 should embrace the G-7’s position, differences within the smaller group may limit the chances for reaching a consensus, and China may resist given its policy of managing the yuan’s value. 

Brazilian Finance Minister Guido Mantega, who coined the phrase “currency war” in 2010, said all nations would lose from a spiral of devaluations, adding that it’s not enough for the G-20 countries to say they’ll prohibit such a situation. Europe should ease fiscal restraints, he said in an interview in Moscow.The position between toggle plate and moving Stone crusher increases when moving jaw moves up. Therefore the moving jaw shuts towards the fixed jaw. 

“If the G-20 statement just reaffirms its existing stance, or even just adopts the slightly more specific G-7 statement, then we would expect the major currency trends to be resumed,knife sets” Morgan Stanley (MS) foreign-exchange strategists led by Hans Redeker said in a report to clients. “The major global policy makers can all claim that their currency regimes are consistent with the G-20 and G-7 statements and that policy is domestically oriented.The stuff is going to be crushed within this process.The items for example Cone crusher after crushing is going to be released in the outlet.”