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CHINA> National
G7 welcomes China's currency commitment
(Xinhua)
Updated: 2009-10-04 14:18

Finance leaders of the Group of Seven (G7) richest economies warned Saturday of disorderly movements in exchange rates and welcomed China's commitment to make the exchange rate of its currency more flexible.

"Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability," according to a statement by the G7 finance ministers and central bankers released here.

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The officials noted in the statement that they welcome China's continued commitment to move to a more flexible exchange rate, saying that "should lead to continued appreciation of the Renminbi in effective terms and help promote more balanced growth in China and in the world economy."

The G7 reaffirmed their shared interest in a strong and stable international financial system and pledged to continue to monitor exchange markets closely and cooperate as appropriate, according to the statement.

Meanwhile, the officials vowed to keep in place their support measures until recovery is assured and at the same time design exit strategies for future implementation.

"There is no room for complacency since the prospects for growth remain fragile and labor market conditions are not yet improving," said the statement.

It also stated that the G7 will work together with other members of the Group of 20 (G20) richest and fastest-growing economies in strengthening financial systems, completing regulatory reform agenda and laying foundation for strong, sustained and balanced growth.

The G7 finance leaders are in Istanbul for the International Monetary Fund and World Bank annual meetings scheduled for Oct 6- 7.

 

 

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