FX Rates Remain Thorny Issue for G-20 Leaders

Leaders of G-20 member countries failed Thursday to narrow differences over foreign exchange rates, a topic of hot debate in the global economy.

G-20 deputy finance ministers started working Monday on the matter and confirmed most of the wording to be contained in the joint communiqué to be announced by leaders, but failed to agree on the currency dispute. They reported this to their leaders Thursday morning after finishing three days of coordination.

Leaders discussed the issue at the welcoming dinner of the G-20 summit, the first event of the conference, at National Museum of Korea in Seoul. The Korean government organized a session on the world economy and framework (cooperative system) alongside dinner, believing the currency issue as the most important.

Since the core of the framework for sustainable and balanced growth is currency, Seoul gave leaders the opportunity to hold free discussion on the issue. In a separate room beside the dining room, finance ministers from 20 countries coordinated their opinions on currency.

The results of the discussion at dinner among leaders and finance ministers were delivered to deputy finance ministers late that night, who held a down-to-the-wire debate to find a solution to the currency issue to be included in the communiqué by Friday morning.

The two-day Seoul G-20 business summit ended with a news conference and closing assembly Thursday. In a joint statement, 120 CEOs of global companies urged G-20 leaders to terminate the Doha Development Agenda, refrain from trade protectionism, and ease financial regulations.

They also said governments should stop state-led economic stimulus policies and let the private sector lead growth.

The joint statement said they look forward to further developing the framework of the Seoul business summit in G-20 gatherings next year, urging leaders to make the business summit a regular event.

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