Seven major developed countries including the United States and Germany pledged on Tuesday to let foreign exchange markets determine the value of their currencies. In a statement, the G-7 powers said they would consult closely to avoid moves that could hurt stability. But they restated a commitment to market-determined exchange rates
“We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates,” the G-7 said in the statement, which was posted on the Web site of the Bank of England.
On Monday, Pierre Moscovici, the French finance minister, said he wanted the Europeans to present a common plan later this week during a meeting of finance ministers and central bankers of the Group of 20 nations to be held in Moscow.
But the head of the German Bundesbank, Jens Weidmann, said Monday that the French initiative was a poor substitute for policy overhauls that, if implemented, would do more for growth.
On Tuesday in Brussels, following a regular monthly meeting of E.U. finance ministers, Wolfgang Schäuble, the German finance minister, said there was “no foreign exchange problem in Europe” and that such issues should be discussed at the G-20 meeting in Moscow.
Close Coordination of Lies
There is no close coordination, except in self-serving lies. Japan is doing what it wants and that is targeting the both the Yen and the Nikkei.
The government of Japan is not open to suggestions from anyone, not even its own central bank head who resigned before his term expired. That resignation allows the government to appoint someone willing to follow the prime minister Shinzo Abe's wish to devalue the Yen.