G-7 Concerned over Volatile Currency Movements

Economy Politics

Washington, Oct. 12 (Jiji Press)--The Group of Seven finance ministers and central bank chiefs on Wednesday expressed concern over volatile currency movements following Russia's invasion of Ukraine and other developments.

In a statement released after their meeting in Washington, the G-7 officials said, "Many currencies have moved significantly this year with increased volatility."

The statement noted that the G-7 will "continue to closely monitor" global financial markets, where the yen, the euro, the pound and many other currencies have been sliding against the dollar.

"We reaffirm our exchange rate commitments as elaborated in May 2017," said the top finance officials of Britain, Canada, France, Germany, Italy, Japan and the United States plus the European Union. The G-7 major economies agreed in 2017 that exchange rates are determined by the market in principle and that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability.

On monetary policies, the statement said the G-7 central banks "are closely monitoring the impact of price pressures on inflation expectations and will continue to appropriately calibrate the pace of monetary policy tightening in a data-dependent and clearly communicated manner."

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