Asia Bizz: US Trade Target Plans Toppled By G20
The trade target plans laid out be the US in a step to stabilize their currency in the foreign markets has been toppled by the G20 members. U.S. Treasury Secretary Timothy Geithner wrote a letter to his fellow finance ministers from the G20, stating that the countries should start showing their current account imbalances below the specified share of national input.
But this proposal kept forward by the US Minister, failed to impress the fellow countries at the first day of the two day meeting, just ahead of the summit in Seoul in November. The Russian and the German Finance ministers sternly disagreed the proposal and kept forward their conclusion.
The German Economy Minister stated that following such proposal would force the country back into “planned economy thinking”. On the other hand the Russian Finance Minister Dmitry Pankin, stated that the communique which will be issued on Saturday would be staying way off its numerical targets. In addition to this he also stated that “The communiquÃ© is very politically correct. There’s nothing sharp in it, In the long term the focus should be on the exchange rates reflecting market conditions. Excessive state interference in currencies should be avoided.”