Gov’t Grappling With Global Foreign Currency Rows

Korea has begun secret negotiations with the U.S. and China to seek agreement on currency policy at next month’s G20 summit in Seoul in cooperation with the G20 secretariat.

A high-ranking government official said Wednesday, “The government submitted a report to the G20 secretariat on the direction of member countries’ macroeconomic policies, including those of foreign exchange rates and consumer prices, for sustainable and balanced growth. It is also examining reports submitted by other member countries.”

“In the process, we hope to come up with a currency policy that satisfies all related countries. A plan to consider currency, fiscal and inflation matters will also be made.”

Seoul is also trying to contact Washington and Beijing to persuade them to resolve currency rows. At the annual International Monetary Fund-World Bank meeting held Friday to Tuesday, Korean delegates spoke to U.S. and Chinese counterparts at informal settings to persuade them to tackle the problem.

China, however, is known to have frowned on other countries intervening.

A high-ranking Korean economy official said, “Though a Plaza Accord-like move is unlikely, the Korean government will come up with better plans on currency at the G20 summit than those devised in the last four G20 meetings.”

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