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G20 to vow to avoid "competitive devaluation"

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Accord elusive as G20 kicks off.

Fri, Oct 22 2010

1 of 9. U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke talk during the G20 Finance Ministers and Central Bank Governors meeting in Gyeongju, October 22, 2010.

Credit: Reuters/Ahn Young-joon/Pool

GYEONGJU, South Korea | Fri Oct 22, 2010 7:04pm EDT

GYEONGJU, South Korea (Reuters) - Finance leaders from the Group of 20 economies will pledge on Saturday to commit themselves to pursue market-determined exchange rates and refrain from "competitive devaluation" of their currencies, a U.S. official said.

A communique to be issued at the conclusion of G20 finance ministers' and central bank governors' meeting here will state: "We're all committed to moving toward market determined exchange rates that reflect underlying fundamentals and refrain from competitive devaluation," said the official, who spoke on condition of anonymity.

(Reporting by David Lawder; Editing by Tomasz Janowski)
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Comments (44)
biztru wrote:
US preaching protectionism! Ha! Ha! Ha! Anyway, even if finally a cap is agreed upon, it will still work horrendously against the US. There is no short cut out of US’ mess. Just think when the world cannot export cheaper goods to US, US will still be uncompetitive overall. US doesn’t even believe that the most efficient market is actually the free market that it preaches. The only single viable solution that can keep US’ credentials, reputation and honour is to bite the bullet and be patient with the recovery. The world, including China and Russia are very likely to help the US. Just stop manufacturing the need to be the sole superpower and trust countries like Germany, Russia and China to help. Let your would heal and health grow naturally back to what it was.

Oct 22, 2010 2:27am EDT  --  Report as abuse
biztru wrote:
Just to add. Historically China was fed opium so much so that the nation became the sick man of Asia. Not too long ago Russia’s economy went into tailspin and USSR cracked with her economy near collapse. Germany lost WWII badly and was even separated into two. Japan was nuked and suffered heavy losses in WWII. Now these four had bounced back not in excellent condition but can pass through the day peacefully. They came back on their own account without having to bring others’ economy down. Now if US has to bring down others in order for her to resuscitate herself, she will probably lose the world’s respect for good.

Oct 22, 2010 2:36am EDT  --  Report as abuse
Rhino1 wrote:
Well, for at least a century now we have done whatever we saw fit to help ourselves, without any regard of what this meant for others. Ironic really that we are now asking the rest of the world to help us out. We invaded countries, toppled governments and refused to sign the Kyoto Protocol. How can you expect other countries to act supportive and not look after their own? They know that with another government of republicans, all will go back to what it was before: me, me, me.

Oct 22, 2010 2:56am EDT  --  Report as abuse
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