MOSCOW Feb 16 Following are key passages of a
final communique issued on Saturday after a meeting of finance
ministers and central bankers from the Group of 20 nations in
It was barely changed from a draft obtained by Reuters
earlier in the day.
ON EXCHANGE RATES:
"We reaffirm 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 toward
mores 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, 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 achieving 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."
"Thanks to the important policy actions in Europe, the U.S.,
Japan and the resilience of the Chinese economy, tail risks to
the global economy have receded and financial market conditions
"However, we recognise that important risks remain and
global growth is still too weak, with unemployment remaining
unacceptably high in many countries.
"We agree that the weak global performance derives from
policy uncertainty, private deleveraging, fiscal drag, and
impaired credit intermediation, as well as incomplete
rebalancing of global demand.
"Under these circumstances, a sustained effort is required
to continue building a stronger economic and monetary union in
the euro area and to resolve uncertainties related to the fiscal
situation in the United States and Japan, as well as to boost
domestic sources of growth in surplus economies, taking into
account special circumstances of large commodity producers."