MOSCOW Feb 16 Following are key passages of a
joint communique to be issued on Saturday after a meeting of
finance ministers and central bankers from the Group of 20
nations in Moscow.
A copy of the text, thrashed out on Friday night, was seen
by Reuters. This is not a full text:
ON EXCHANGE RATES:
"We reaffrm our commitment to cooperate for achieving a
lasting reduction in global imbalances and pursue structural
reforms affecting domestic savings and improving productivity.
"We reiterate our commitments to move more rapidly towards
market-determined exchange rate systems and exchange rate
flexibility to reflect underlying fundamentals and avoid
persistent exchange rate misalignments, and in this regard, work
more closely with one another so we can grow together.
"We reiterate that excess volatility of financial flows and
disorderly movements in exchange rates have adverse implications
for economic and financial stability.
"We will refrain from competitive devaluation. We will not
target our exchange rates for competitive purposes. We will
resist all forms of protectionism and keep our markets open."
ON FISCAL CONSOLIDATION:
"To address the weakness of the global economy, ambitious
reforms and coordinated policies are key to achieve strong,
sustainable and balanced growth and restoring confidence.
"We will continue to implement our previous commitments,
including on the financial reform agenda to build a more
resilient financial system and on ambitious structural reforms
to lift growth.
"We are committed to ensuring sustainable public finances.
"Advanced economies will develop credible medium-term fiscal
strategies in line with the commitments made by our leaders in
Los Cabos, by the St. Petersburg summit.
"Credible medium-term fiscal consolidation plans will be put
in place and implemented, taking into account near-term economic
conditions and fiscal space where available.
"We support action to improve the flow of credit to the
economy where necessary. Monetary policy should be directed
toward domestic price stability and continuing to support
economic recovery, according to the respective mandates.
"We commit to monitoring and minimizing negative spillovers
on other countries of policies implemented for domestic
purposes. We look forward to the results of the ongoing work on
spillovers in the Framework Working Group."