The Group of Seven industrialized countries called for more flexible exchange rates, boosting US treasury secretary, John Snow’s, campaign to persuade China to loosen its currency peg and Japan to reduce sales of the yen
Published:
22 September 2003 y., Monday
“We reaffirm that exchange rates should reflect economic fundamentals,” a statement from G7 finance ministers and central bankers meeting in Dubai said. “We emphasize that more flexibility in exchange rates is desirable for major countries or economic areas.”
The statement stops short of singling out any nation. China, the world’s sixth-largest economy, has pegged the yuan at 8.3 to the dollar since 1995, helping its economy to grow an average annual rate of 8.3 percent over the past decade. Japan, South Korea, Thailand, Indonesia and Taiwan have this year all sold their currencies to stem gains that would hurt exports.
Snow and US President George W. Bush, who is seeking reelection next year, are under pressure from lobbyists and unions representing American companies such as General Electric Co. and Nucor Corp. They blame the yuan peg for job losses and a record trade deficit with China because of the price advantage it gives Chinese exporters.
Japan sold an unprecedented 9.03-trillion yen ($76.8 billion) from January through July in an effort to weaken its currency and boost exports. The yen rose (on September 19) to 113.99 a dollar in New York trading, the highest since January. 4, 2001.
Analysts said Japan’s agreement to the statement showed it may be preparing to scale back yen sales.
Šaltinis:
manilatimes.net
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
New legislation for pan-European supervision of credit rating agencies and a public debate on how financial institutions are managed.
more »
On 2 June in Vilnius, Lithuania‘s Vice-Minister of Foreign Affairs Asta Skaisgirytė Liauškienė and Deputy Director General of the World Trade Organization Rufus H. Yerxa discussed the main issues on the international trade policy agenda, Russia‘s WTO accession and the changing role of China in the world economy.
more »
2157 former construction workers in Spain and 598 ex-employees at the Irish crystal glass company Waterford Crystal with suppliers could get €11 million in EU globalisation adjustment fund aid for training, self-employment and professional orientation under plans approved by the Budgets Committee on Wednesday.
more »
Companies from the UK, Belgium, Germany and Spain have won the 2010 European Business Awards for the Environment.
more »
The planned overhaul of EU fisheries policy should devolve more powers to regions, protect small coastal fleets and boost aquaculture, said MEPs and members of national parliaments on Tuesday.
more »
The first in a series of loan agreements for energy efficiency investments in multi-apartment buildings was signed today between the European Investment Bank (EIB), as manager of the JESSICA holding fund in Lithuania, and Šiaulių bankas.
more »
Despite the current economic crisis and tensions in the euro, Estonia is set to adopt the single currency in January.
more »
Commission proposes a bank tax to cover the costs of winding down banks that go bust.
more »
The European Investment Bank will provide a total of EUR 400 million to Hellenic Petroleum SA in order to increase the production of cleaner fuels via the upgrading of the Elefsina refinery.
more »
European ministers meet on Tuesday and Wednesday in Brussels at the final Competitiveness Council to be held during the six months of the Spanish Presidency, which has an agenda laden with important issues such as the electric vehicle, the European patent system and national R+D investment goals.
more »