G-20 defuses talk of 'currency war', no accord on debt-cutting targets
MOSCOW (REUTERS) - The Group of 20 nations (G-20) declared on Saturday there would be no "currency war" and deferred plans to set new debt-cutting targets in an indication of concern about the fragile state of the world economy.
Japan's expansive policies, which have driven down the yen, escaped criticism in a statement agreed in Moscow by financial policymakers from the G-20, which groups developed and emerging markets and accounts for 90 per cent of the world economy.
After late-night talks, finance ministers and central bankers agreed on wording closer than expected to a joint statement issued last Tuesday by the Group of Seven rich nations (G-7) backing market-determined exchange rates.
A draft communique seen by delegates on Friday steered clear of the G-7's call for fiscal and monetary policy not to be targeted at exchange rates, but the final version included a G-20 commitment to refrain from competitive devaluations and stated monetary policy would be directed at price stability and growth.