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G20 vows to support financial stability, sustainable growth

English.news.cn   2013-02-17 04:47:40            

 G20 on Saturday pledged to strengthen financial stability and promote sustainable growth.
 • G20 reaffirmed their commitment to refrain from competitive devaluation.
 • Developed countries pledged to consider the spillover effect of their macro-economic policies.

 

Photo taken on Feb. 16, 2013 shows the scene of the Group of 20 (G20) Meeting of Finance Ministers and Central Bank Governors in Moscow, Russia. The two-day meeting concluded here on Saturday. (Xinhua)

MOSCOW, Feb. 16 (Xinhua) -- Finance ministers and central bankers of the Group of 20 (G20) on Saturday pledged to strengthen financial stability and promote sustainable growth at the conclusion of a two-day meeting here.

In a joint communique issued following the meeting, the finance officials vowed to promote more market-determined exchange rate systems and let exchange rate flexibility to reflect underlying fundamentals.

They recognized the "adverse implications" of volatile financial flows and exchange rates for economic stability, reaffirmed their commitment to 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," said the communique.

The Japanese Yen has plunged against other major currencies recently following moves by Japan's new leaders to ease monetary policy and stimulate the economy, sparking fears of a new round of "currency war."

But several high-ranking officials form major international financial institutions called the hypothetical conflicts over currencies as "rootless" and "pointless."

Angel Gurria, Secretary General of the Organization for Economic Cooperation and Development (OECD) said on the first day of the meeting that the term "currency war" was out-of-date and should not be discussed at the G20 level.

Instead of being distracted by the old jargon, today's policy makers should focus more on productivity and competitiveness, Gurria said.

International Monetary Fund (IMF) chief Christine Lagarde said that though the imbalance of economic recovery has posed pressures on various countries, the IMF review showed relevant currencies have been fairly valuated.

European Central Bank chief Mario Draghi also rebuffed the currency war rhetoric, saying exchange rates were not policy goals, but played important roles in promoting growth and stabilizing prices.

Meanwhile, the ultra-loose monetary policies adopted by major developed countries also caused concerns from their developing partners in the meeting, since currency devaluation negatively affected the export and foreign reserves of emerging economies.

During the Moscow meeting, developed countries pledged to consider the spillover effect of their macro-economic policies, especially the monetary policies on the world economy in general and developing countries in particular.

Russian Finance Minister Anton Siluanov urged some countries to bear in mind the risks of adopting loose monetary policies, noting the global rebalance should be achieved via a series of measures instead of mere exchange rates adjustment.

Besides exchange rates and monetary policy, long-term growth was another central topic for discussion.

Chinese Finance Minister Xie Xuren and Governor of the People's Bank of China Zhou Xiaochuan outlined key points of the Chinese government's economic policy during the meeting, saying China's sustainable development has contributed to the global recovery and growth.

Their remarks were echoed in the communique, which claimed that important political steps taken in the United States, Europe and Japan, as well as sustainable economic growth in China lowered major economic risks facing world economy and boosted the financial markets.

With fragile global recovery and bleak employment figures, participants of the meeting recognized the weakness of economic growth, pledging to reduce global imbalances and continue structural reforms so as to achieve strong, sustainable and balanced growth, the communique said.

International financial architecture reform was another main topic of the meeting. G20 members reaffirmed the urgent need to ratify the 2010 IMF quota and governance reform, vowing to reach an agreement on the quota formula and complete the general quota review by January 2014 as agreed at the Seoul Summit.

The G20 Moscow conference was the first major event chaired by Russia since it held the G20 rotating presidency in 2013.

Related:

G20 agrees to curb competitive currency devaluation

MOSCOW, Feb. 16 (Xinhua) -- Finance Ministers and central bankers of the Group of 20 (G20) on Saturday pledged not to target exchange rates or devalue currencies for the purpose of making them more competitive.

G20 members would "refrain from competitive devaluation" and " resist all forms of protectionism and keep our markets open," said the communique after the G20 finance meeting here. Full story

G20 wrangles over exchange rates

 BEIJING, Feb. 16 (Xinhuanet) -- The Group of 20 major economies are locked in discussions, to try to find common ground on exchange rates and borrowing.

The two day meeting of G20 finance officials in Moscow, is highlighting rifts between those who want to ignite rapid growth, and supporters of more austerity. The talks have so far been dominated by a row over Japan’s monetary easing policies, which have driven down the value of the yen. Full story

Russia focuses G20 presidency on financial regulations

 MOSCOW, Feb. 15 (Xinhua) -- Russian President Vladimir Putin said Friday that Moscow will focus on financial sector regulations during its presidency in the Group of Twenty (G20).

"We offer to discuss the priorities of the financial markets' development of instruments for investment financing and global trade," Putin told the meeting of the G20's financial policy makers. Full story

Interview: G20's Moscow meeting to discuss array of financial issues: Chinese official

 MOSCOW, Feb. 15 (Xinhua) -- Finance ministers and central bank officials of the Group of Twenty (G20) have been seeking to strengthen financial supervision and avoid currency devaluations in the Moscow meeting, a Chinese official said here Friday.

Financial supervision remains a major issue in the G20 process, Chinese Vice Finance Minister Zhu Guangyao told the Chinese media on the first day of the closed-door meeting scheduled on Friday and Saturday. Full stoty

 

Editor: Luan
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