Canadian finance minister Jim Flaherty (R) and Bank of Canada Governor Mark Carney hold a joint news conference following the G7 Finance Ministers meeting in Washington April 11, 2008.
Photo: Reuters
| Other Photos |
 |
|
 |
G7 Attempts to Stop Dollar Decline
First time over a great while, finance ministers of G7 nations voiced concern about sharp fluctuations on the markets of foreign exchange and continuous depreciation of the U.S. dollar.
After meeting on Friday, the G7 issued the strongest communique of concern in more than seven years about sharp currency moves and a weaker dollar, Reuters reported. The G7 hasn’t made such statement since 2000, when it stepped in to back up euro. Another currency, the U.S. dollar, is the subject of today’s agitation. Indeed, the dollar has lost roughly 10 percent to euro and 10.8 percent to Japanese yen since early this year.
At the same time, most of the analysts aren’t optimistic about the G7 interference, doubting that its efforts would suffice to stop the greenback’s slide. The traders are advised to wait till the U.S. stock market recovers from August collapse on subprime loan market.
So, European exporters that suffer losses as a result of the weaker dollars, urge the G7 leaders to take actions, while the analysts don’t think the hopes about the G7 aptness to sustain dollar will eventually materialize.
“While markets will take note of the G7 statements, it is unlikely that there will be any major reaction," Reuters quoted as saying El-Erian, a former IMF official. "Instead, the focus will remain on the outlook for the U.S. economy and the remaining phase of deleveraging in the financial sector."
www.kommersant.com
|
|
|
