http://www.cnbc.com/id/39793256
G20 Shouldn't Use Currencies for Trade Gains: Geithner
Published: Friday, 22 Oct 2010 | 5:28 AM ET
By: Reuters
Group of 20 nations
should refrain from currency policies aimed at gaining a competitive edge, U.S. Treasury Secretary Timothy Geithner said in a letter to G20 finance chiefs.
Geithner also said that nations with undervalued currencies should neither try to weaken them or stand in the way of gains and G20 members should aim to reduce their current account imbalances below specified percentage of gross domestic product, according to a letter obtained by Reuters on Friday.
G20 finance officials
started their formal two days of meetings
on Friday with nations from the developing world and Japan dismissing U.S. proposals to set caps on current account balances in a bid to defuse tensions over currencies that economists fear could trigger trade wars.
A senior G20 official however put the chances for an agreement on current account targeting at even.
Copyright 2010 Thomson Reuters.
