G7 says to make deepened recession top priority

The G7 industrial powers promised to make fighting the recession their top priority but to try to limit the knock-on impact of their actions.

G7 says to make deepened recession top priority
The G7 industrial powers promised on Saturday to make fighting the recession their top priority but to try to limit the knock-on impact of their actions, as concern grows that protectionism is on the increase.

A final communique from a meeting in Rome of G7 finance ministers and central bankers, plus Russia, said stabilising the global economy and financial markets was their "highest priority."

They also softened their tone on the Chinese yuan while saying they expected it to continue appreciating, but did not single out moves in other currencies, despite some speculation in markets that they might publicly express concern about the yen and pound, which have respectively risen and slid.

Ministers said they would monitor foreign exchange markets closely and take appropriate action, in language broadly similar to their last meeting in October.

But the tone on China was slightly softer than previously, in an effort to repair the damage from a spat with Washington over comments that Beijing was manipulating its exchange rate for economic gain.

"We welcome China's fiscal measures and continued commitment to move to a more flexible exchange rate, which should lead to continued appreciation of the Renminbi (yuan) in effective terms," read the statement from Rome.

"We reaffirm our commitment to act together using the full range of policy tools to support growth and employment and strengthen the financial sector," it said. "We will continue to work together to avoid undesirable spillovers and distortions."

"The G7 remains committed to avoiding protectionist measures, which would only exacerbate the downturn, to refraining from raising new barriers and to working towards a quick and ambitious conclusion of the Doha Round," of global free trade negotiations, it said.

Reuters
Last Mod: 15 Şubat 2009, 11:46
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