G20 Finance Ministers – Central bankers and finance ministers from the 20 world leaders in developing and industrial countries made a pledge on Saturday that they won’t target their exchange rates to compete.
The Moscow meeting, which lasted two-days, ended on Saturday with a collective communiqué that included a promise and pledge that the G20 members would “refrain from competitive devaluation” and “resist all forms of protectionism and keep our markets open.”
They reiterated that excessive volatility of disorderly movements and financial flows in exchange rates have antagonistic implications on financial and economic stability, according to their statement.
Jim Flaherty, the Canadian Finance Minister says that leaders from the 20 top economies in the world have progressed when it comes to economic growth and balancing fiscal discipline.
He said that he is pleased by the pledge of the G20 leaders to assume “credible, medium-term fiscal strategies.”
Russian Finance Minister Anton Siluanov, while speaking at a news conference after the signing, said that all G20 nations are in agreement that they must remit strong economic growth instead of “manipulating the markets.”
Several politicians and investors have been worried about recent developments that have affected the yen in Japan, which is currently trading close to a three-year low.
However, the ministers in their communiqué didn’t single out Japan, or the outcome of the country’s actions.
They also expressed conviction on cracking down on businesses who duck their taxation responsibilities with complicated schemes.
The G20 Finance Ministers vowed to take the necessary action collectively, and have waited for a plan of action that is scheduled to be put in place later in 2013 by the Organisation for Co-operation and Economic Development (OECD).