G20 agrees to block ‘currency wars’ | Project World Awareness via @rockingjude #G20

G20 agrees to block ‘currency wars’

Posted on November 12, 2010 by rockingjude

Leaders of the world’s biggest economies papered over their differences at the G20 with agreement to develop new guidelines to prevent so-called “currency wars”.

The deal falls well short of the 4% limit on national trade deficits and surpluses proposed by US President Barack Obama, which was blocked by exporting countries China and Germany.

Washington and Britain have accused Beijing of keeping the value of its yuan currency artificially low to make its exports cheap, fuelling the massive trade imbalances which played a part in the 2008 crisis.

President Obama appeared to sharpen his criticism in the wake of the agreement, insisting that exchange rates “must reflect economic realities”.

“Emerging economies need to allow for currencies that are market-driven,” he said. “This is something that I raised with President Hu of China and we will closely watch the appreciation of China’s currency.”


Author: Chilleh Penguin

A frisky penguin.

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