Friday, November 12, 2010

BBC News-G20; President Obama Wants To Limit Trade Deficits

President Obama at the 2010 G20 in Seoul, South Korea: BBC News
(Story reported by BBC News)

Leaders of the G20 group of major economies have agreed to avoid "competitive devaluation" of currencies after talks concluded in the South Korean capital, Seoul.

Leaders agreed to come up with "indicative guidelines" to tackle trade imbalances affecting world growth.

Tensions had been high between some delegations over how to correct distortions in currency and trade.

But the agreement fell short of a US push to limit trade deficits.

Some fear the conflict, chiefly between China and the US, may threaten global growth.

US President Barack Obama said there should be no controversy about fixing imbalances "that helped to contribute to the crisis that we just went through".

"Exchange rates must reflect economic realities," he said.

"Emerging economies need to allow for currencies that are market-driven. This is something that I raised with President Hu of China and we will closely watch the appreciation of China's currency."

(Click here to read the full story on the BBC News website.)

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