G8 Avoids Dollar Talk, Pledges To Refrain From Currency Devaluation
Thu. July 09, 2009; Posted: 12:48 PM
(RTTNews) - Despite nagging rumors that Group of Eight leaders meeting in Italy would discuss an alternative to the dollar as the world's de facto reserve currency, there was no mention of the greenback in a draft declaration on the international monetary system released Thursday.
The dollar has swung wildly over the past few years, resulting in calls from China, which holds about 70 percent of its currency reserves in dollar assets, to establish a new reserve currency.
The G8 pledged to not devalue thier respective currencies in order to gain trade advantages, and swore off protectionism.
"We will refrain from competitive devaluations of our currencies and promote a stable and well functioning international monetary system," the leaders said in a draft joint declaration.
The G8 added, "We reaffirm our commitment to maintain and promote open markets and reject all protectionist measures in trade and investment."
The statement also emphasized efforts to stabilize the global financial system.
Promising supervision to prevent boom and bust cycles, the G8 said it would "work to ensure propriety, integrity and transparency of international economic and financial activity."
Addressing the impact of the global economic meltdown on the developing world, the leaders vowed to support emerging nations in withstanding the impact of the crisis and restoring conditions for their future progress.
Together with the leaders of Australia, Indonesia and South Korea, the G8 committed to seek an ambitious and balanced conclusion to the Doha Development Round in 2010, promising that trade minister would meet prior to the G20 summit in Pittsburgh on September 24.
Thu. July 09, 2009; Posted: 12:48 PM
(RTTNews) - Despite nagging rumors that Group of Eight leaders meeting in Italy would discuss an alternative to the dollar as the world's de facto reserve currency, there was no mention of the greenback in a draft declaration on the international monetary system released Thursday.
The dollar has swung wildly over the past few years, resulting in calls from China, which holds about 70 percent of its currency reserves in dollar assets, to establish a new reserve currency.
The G8 pledged to not devalue thier respective currencies in order to gain trade advantages, and swore off protectionism.
"We will refrain from competitive devaluations of our currencies and promote a stable and well functioning international monetary system," the leaders said in a draft joint declaration.
The G8 added, "We reaffirm our commitment to maintain and promote open markets and reject all protectionist measures in trade and investment."
The statement also emphasized efforts to stabilize the global financial system.
Promising supervision to prevent boom and bust cycles, the G8 said it would "work to ensure propriety, integrity and transparency of international economic and financial activity."
Addressing the impact of the global economic meltdown on the developing world, the leaders vowed to support emerging nations in withstanding the impact of the crisis and restoring conditions for their future progress.
Together with the leaders of Australia, Indonesia and South Korea, the G8 committed to seek an ambitious and balanced conclusion to the Doha Development Round in 2010, promising that trade minister would meet prior to the G20 summit in Pittsburgh on September 24.