Highlights: G20 finance chiefs on fx, global imbalances, IMF - The Group of 20 advanced and emerging economies agreed on Saturday to move toward market-determined exchange rates and to pursue the full range of policies needed to reduce excessive external imbalances.
Here are comments from officials after the meeting:
MARK CARNEY, BANK OF CANADA GOVERNOR
"It has long been the position of the G7 and broader advanced countries that we would ... In favoring flexible exchange rates but reserving the right to cooperate as appropriate avoid excess volatility and disorderly moves in exchange rates. You should look at the language here, as we do, as a reaffirmation of those positions at a time of heightened currency tensions."
DOMINIQUE STRAUS-KAHN, IMF MANAGING DIRECTOR
IMF REFORM
"You can always argue that this country deserves 0.1 ppts more or 0.1 ppts less, but the reality this is that it (IMF board) now represents the reality of the global economy."
"Until the reform has been adopted by 85 percent of the voting power.
JAPANESE FINANCE MINISTER YOSHIHIKO NODA
ON G20
"I believe (the statement) has more active meaning (than past statements) as it calls for appropriate cooperation (on currencies) while paying close attention to the market. I take it that the dollar, yen and euro will be more stabilized.
Larger version
Ask America: Learn. Listen. Be heard.
ON FX
"We intervened last time to curb excessive moves, and our stance remains unchanged that we'll respond appropriately and take decisive steps when necessary.
"I'll keep close watch on the market. If G20 failed to make a commitment to tackling the issues of currencies and external imbalances, that would cause an impact, but I want the market to appreciate the fact that a certain agreement was reached."
YOON JEUNG-HYUN, SOUTH KOREA FINANCE MINISTER
"The reason I regard (this week's meetings) as a success is that the agreement here will play a critical role in removing uncertainty in the global markets such as the foreign exchange rate issues. This will put an end to the controversy over foreign exchange rates.
"The difference between 'market-oriented' and 'market-determined' foreign exchange rates is that the latter is now emphasizing the role of the markets. The change (in expression from the previous communique) means we promote the role of the markets under strengthened macro-prudential system."
KIM CHOONG-SOO, BANK OF KOREA GOVERNOR
"It is premature to say if the G20 will adopt numeric targets about the current account surplus or deficit.
"I don't think indicative guidelines (on current account) will be binding ones."
BELGIAN FINANCE MINISTER DIDIER REYNDERS
"If we want to have informal discussions in the G20 format and formal discussions in the IMF we have got to have the same composition around the table in the two fora."
PRANAB MUKHERJEE, INDIA FINANCE MINISTER
ON IMF
"Of course the legitimacy of the IMF is increasing. Our complaint was that the quota share should reflect ground reality and economic strengths currently, else it would have eroded the credibility of the institution. That has now been corrected."
TIMOTHY GEITHNER, US TREASURY SECRETARY
"You asked about the dollar. I will take this opportunity to reaffirm that the policy of the United States is to support a strong dollar."
"First, we have agreed that it is important to limit the overall level of external imbalances across the global economy.
"Second, we have agreed to cooperate more closely on exchange rate policy.
"Third, we agreed to give a greater role to the IMF in implementing these commitments."
GEORGE OSBORNE, UK FINANCE MINISTER
ON CURRENT ACCOUNT BALANCE TARGETS:
"I think it is within the realms of possibility but we are not there yet. Other countries make the point there are very particular circumstances, so a single number applied to all countries may not be appropriate.
"I am sure it will be a topic for discussion at the Seoul summit, having cleared away the IMF (issues)."
ON CURRENCIES
"I think what people have been nervous about is that the current imbalances get worse as countries other than China look potentially at the route of competitive devaluation and this language calms everything down and gives us a route map for resolving these imbalances."
CHRISTIAN NOYER, ECB GOVERNING COUNCIL MEMBERR & GOVERNOR OF BANK OF FRANCE
ON CURRENCIES AND CURRENT ACCOUNT TARGETS
"We all recognize that there is a clear danger in having too volatile capital flows, that is a risk to growth for both advanced and emerging economies. So there is a clear common goal to address: unsustainable imbalances.
"The idea is not to concentrate only on exchange rate matters, which is very often everyone's focus of attention ... what we want to really address is the whole of ... macro-economic policies that may contribute to these imbalances.
"It means that we want to promote the maximum stability amongst the major currencies because that will reduce the risk of abrupt movements including capital flows which may facilitate asset bubbles in emerging markets or the diffusion of inflation."
CHRISTINE LAGARDE, FRENCH ECONOMY MINISTER
ON IMF
"It was a long expected reform that is really shifting the balance of power and making space for all economies including emerging markets."
ON CURRENT ACCOUNT TARGETS
"There were no specific targets in Geithner's letter. In the back of his mind, he probably would have liked specific targets ... In the communique it says indicative guidelines will be agreed so we will have started the process."
OLLI REHN, EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER
ON IMF REFORM:
"This is to be seen as an immediate compromise. In the long term, we need to discuss how to better project European influence in global governance.
ON CURRENCIES AND CURRENT ACCOUNT TARGETS:
"We are in favor of defining indicative guidelines on issues that matter for global imbalances. However setting specific numerical targets would have been easily counter-productive.
(Reporting by G20 News Team; Editing by Ed Lane and Tomasz Janowski)
Here are comments from officials after the meeting:
MARK CARNEY, BANK OF CANADA GOVERNOR
"It has long been the position of the G7 and broader advanced countries that we would ... In favoring flexible exchange rates but reserving the right to cooperate as appropriate avoid excess volatility and disorderly moves in exchange rates. You should look at the language here, as we do, as a reaffirmation of those positions at a time of heightened currency tensions."
DOMINIQUE STRAUS-KAHN, IMF MANAGING DIRECTOR
IMF REFORM
"You can always argue that this country deserves 0.1 ppts more or 0.1 ppts less, but the reality this is that it (IMF board) now represents the reality of the global economy."
"Until the reform has been adopted by 85 percent of the voting power.
JAPANESE FINANCE MINISTER YOSHIHIKO NODA
ON G20
"I believe (the statement) has more active meaning (than past statements) as it calls for appropriate cooperation (on currencies) while paying close attention to the market. I take it that the dollar, yen and euro will be more stabilized.
Larger version
Ask America: Learn. Listen. Be heard.
ON FX
"We intervened last time to curb excessive moves, and our stance remains unchanged that we'll respond appropriately and take decisive steps when necessary.
"I'll keep close watch on the market. If G20 failed to make a commitment to tackling the issues of currencies and external imbalances, that would cause an impact, but I want the market to appreciate the fact that a certain agreement was reached."
YOON JEUNG-HYUN, SOUTH KOREA FINANCE MINISTER
"The reason I regard (this week's meetings) as a success is that the agreement here will play a critical role in removing uncertainty in the global markets such as the foreign exchange rate issues. This will put an end to the controversy over foreign exchange rates.
"The difference between 'market-oriented' and 'market-determined' foreign exchange rates is that the latter is now emphasizing the role of the markets. The change (in expression from the previous communique) means we promote the role of the markets under strengthened macro-prudential system."
KIM CHOONG-SOO, BANK OF KOREA GOVERNOR
"It is premature to say if the G20 will adopt numeric targets about the current account surplus or deficit.
"I don't think indicative guidelines (on current account) will be binding ones."
BELGIAN FINANCE MINISTER DIDIER REYNDERS
"If we want to have informal discussions in the G20 format and formal discussions in the IMF we have got to have the same composition around the table in the two fora."
PRANAB MUKHERJEE, INDIA FINANCE MINISTER
ON IMF
"Of course the legitimacy of the IMF is increasing. Our complaint was that the quota share should reflect ground reality and economic strengths currently, else it would have eroded the credibility of the institution. That has now been corrected."
TIMOTHY GEITHNER, US TREASURY SECRETARY
"You asked about the dollar. I will take this opportunity to reaffirm that the policy of the United States is to support a strong dollar."
"First, we have agreed that it is important to limit the overall level of external imbalances across the global economy.
"Second, we have agreed to cooperate more closely on exchange rate policy.
"Third, we agreed to give a greater role to the IMF in implementing these commitments."
GEORGE OSBORNE, UK FINANCE MINISTER
ON CURRENT ACCOUNT BALANCE TARGETS:
"I think it is within the realms of possibility but we are not there yet. Other countries make the point there are very particular circumstances, so a single number applied to all countries may not be appropriate.
"I am sure it will be a topic for discussion at the Seoul summit, having cleared away the IMF (issues)."
ON CURRENCIES
"I think what people have been nervous about is that the current imbalances get worse as countries other than China look potentially at the route of competitive devaluation and this language calms everything down and gives us a route map for resolving these imbalances."
CHRISTIAN NOYER, ECB GOVERNING COUNCIL MEMBERR & GOVERNOR OF BANK OF FRANCE
ON CURRENCIES AND CURRENT ACCOUNT TARGETS
"We all recognize that there is a clear danger in having too volatile capital flows, that is a risk to growth for both advanced and emerging economies. So there is a clear common goal to address: unsustainable imbalances.
"The idea is not to concentrate only on exchange rate matters, which is very often everyone's focus of attention ... what we want to really address is the whole of ... macro-economic policies that may contribute to these imbalances.
"It means that we want to promote the maximum stability amongst the major currencies because that will reduce the risk of abrupt movements including capital flows which may facilitate asset bubbles in emerging markets or the diffusion of inflation."
CHRISTINE LAGARDE, FRENCH ECONOMY MINISTER
ON IMF
"It was a long expected reform that is really shifting the balance of power and making space for all economies including emerging markets."
ON CURRENT ACCOUNT TARGETS
"There were no specific targets in Geithner's letter. In the back of his mind, he probably would have liked specific targets ... In the communique it says indicative guidelines will be agreed so we will have started the process."
OLLI REHN, EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER
ON IMF REFORM:
"This is to be seen as an immediate compromise. In the long term, we need to discuss how to better project European influence in global governance.
ON CURRENCIES AND CURRENT ACCOUNT TARGETS:
"We are in favor of defining indicative guidelines on issues that matter for global imbalances. However setting specific numerical targets would have been easily counter-productive.
(Reporting by G20 News Team; Editing by Ed Lane and Tomasz Janowski)
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