As Sean Callow, Westpac FX strategist, notes: "G20 statements always reflect the difficulty in reaching agreement among nations with often quite diverse policy approaches, settling on generalities with little risk of shaking up markets. Once again, for FX markets, the Moscow statement offered only a modest tweak compared to the Nov 2012 Mexico City statement"
Some key FX-related passages obtained from the statement can be found below:
- “We will not target our exchange rates for competitive purposes”.
- "We reiterate our commitments to move more rapidly toward more market-determined exchange rate systems and exchange rate flexibility..."
- "We reiterate that excess volatility of financial flows and disorderly movements in exchange rates have adverse implications for economic and financial stability.
In brief, as Forexlive editor Eamonn Sheridan, notes: "If policy is aimed at achieving results in the domestic economy then its OK. Of course, it is difficult to gauge whether domestic policies are, or are not, aimed at weakening the currency."
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