Finance ministers of the G20 major economies will meet on Friday amid anxiety that a currency war is looming.
by Rachel Cooper, The Telegraph:
The meeting in Moscow, between finance ministers who represent countries accounting for 90pc of the world’s GDP, looked likely to be dominated by sparring over Japan’s policies that have driven down the value of the yen.
Japan’s huge round of fiscal and monetary expansion is aimed at raising the rate of inflation to 2pc. The yen has fallen by around 20pc since November, sparking a rally in Japanese stocks that, the government hopes, will jump-start growth by encouraging savers to spend and companies to invest.
With the US, Britain and the eurozone all implementing loose monetary policy, some emerging market exporters have sounded the alarm over ‘currency wars’ that they fear will devalue their foreign reserves and hurt their competitiveness.