Sunday, October 4, 2009

G7 decides whether the "seven" substitute "four"

ISTANBUL - Financial officials of the Group of seven most developed industrial countries (G7), which for decades had a leading word in creating a global economic policy, yesterday at a meeting in Istanbul, discussing the future reduce the impact of their group, faced with disagreement about the rate of currency .

The influence of the G7 over the credit crisis pomrańćila G20, which includes countries such as the economic rise of China and India. Finance ministers and central bank governors of the G7 should now find a way to define the change, says Reuters.

"A group of seven is not completely dead, but loses its significance. It is the way of extinction," said Executive Director of the International Monetary Fund Dominique Strauss-Kahn.
Other officials recommended that the G7 should continue to exist, but with a much smaller role.

Unnamed G7 meeting participant told Reuters today that Washington wanted to "seven", in which the United States, Japan, Germany, Great Britain, France, Italy and Canada, replace "four" which would include the U.S., Europe, China and Japan.

The rate of the world's leading currency is among the main topics the G7 meeting and competing views of its members in connection with the difficult exit from the crisis.

Widespread attitude that the Chinese decision to allow the growth potcenjenog and firmly controlled yuan was a major factor in correcting global trade imbalances and reducing the risks of a new crisis, but China, not G7 members, shows no sign it is prepared to respect the requirements to change yuan exchange rate against the dollar, transfers Reuters.

G7 Finance Ministers emphasized that they support the strengthening dollar, due to growing concerns that the weakness of U.S. currency could affect the recovery of the global economy.

"We welcomed the statement Secretary of State for Finance Timothy Gajtnera that the essential interests of the United States to have a strong dollar," he said yesterday, reporters Axel Weber, Bundesbank president.

Canadian Finance Minister Jim Flaerti said late last night, immediately after arriving in Istanbul, is "concerned about the growing pressure on the Canadian dollar, due to the weakness of U.S. currency.

Concern over dollar weakness and expressed the European Central Bank head Jean-Claude Trichet, said the agency Bloomberg reported from Istanbul.

A set of finance ministers and governors of central banks, G7 preceded by a series of meetings a member of the IMF and WB, including the two-day annual meeting of financial institutions, on Tuesday and Wednesday.

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