USA: Finance chiefs of 7 economic powers meet to seek gradual and flexible currency rate in Asia.

Record ID: 872657

  • Title: USA: Finance chiefs of 7 economic powers meet to seek gradual and flexible currency rate in Asia.
  • Date: 23rd April 2006
  • Summary: JEAN-CLAUDE JUNCKER, CURRENT PRESIDENT OF THE EUROPEAN COUNCIL, ARRIVING
  • Embargoed: 8th May 2006 13:00
  • Keywords:
  • Location: Usa
  • City:
  • Country: USA
  • Topics: International Relations,Economic News
  • Reuters ID: LVA9OQJ1IHCBFOLY9SY1B2AT0JGB
  • Aspect Ratio:
  • Story Text: Finance chiefs from the Group of Seven economic powers were
    expected after a meeting on Friday (April 21) to repeat calls for greater
    currency rate flexibility in Asia, but will stress the need for coordinated
    and gradual adjustments.
    The G-7 oversees almost two-thirds of the world economy and comprises
    the U.S., Japan, Germany, the U.K., France, Italy and Canada. Officials met in
    a Washington hotel and are scheduled to release a statement and speak with
    reporters after their talks conclude at about 7 p.m. local time (2300GMT).

    "The dollar will not be mentioned specifically," a senior
    European financial source told reporters. "G7 will ask for more
    flexibility in Asian foreign exchange rates. They would like to have gradual
    and coordinated developments of foreign exchange markets."
    Earlier, the source said world finance chiefs discussed how to prevent
    a sharp dollar decline resulting from a correction of global trade
    imbalances
    The meeting came as oil prices vaulted to a new peak over 75 U.S.
    dollars (USD) a barrel on Friday as investment funds snapped up crude futures
    and tension mounted over Iran's nuclear intentions.
    Jean-Claude Juncker, the Current President of the European Council,
    expressed concerns over the peaking oil prices.
    The G7 officials, who included U.S. Treasury Secretary John Snow,
    European Central Bank President Jean-Claude Trichet and Japanese Finance
    Minister Sadakazu Tanigaki, met days after the International Monetary Fund
    said global growth will be close to its fastest pace in three decades.
    While the IMF expects the U.S. to expand at the slowest rate in two
    years, the lender raised its 2006 global growth forecast to 4.9 percent from
    4.3 percent previously.
    Japan will grow 2.8 percent this year, the most since 2000, and the
    euro area will expand about 2 percent this year and next, a performance it
    hasn't managed to sustain since the start of the decade. The IMF expects U.S.
    gross domestic product to increase 3.4 percent this year.
    As economies in Europe and Japan rebound, officials may say the onus is
    on China to do more to address disparities in global trade. Snow and other
    ministers, including France's Thierry Breton, argue China is contributing to
    the trade and current account deficits by limiting the appreciation in its
    currency, the yuan. The yuan has gained 1.2 percent since a revaluation in
    July.
    AMREP/JRC
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