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novembro 19, 2004
G20 meets amid record-high euro and weak dollar
Finance ministers and central bank chiefs from the world's 20 most powerful nations were gathering for a weekend G20 summit in which exchange rates are expected to figure prominently.
Officially, the current strength of the euro and the slide of the dollar are not on the agenda.
But with the world's seven richest nations -- Britain, Canada, France, Germany, Italy, Japan and the United States -- present as well as the key emerging nations, it is difficult to imagine that the subject will not be discussed on an unofficial basis.
The euro hit a new record high of 1.3074 dollars during trading Thursday, as German Finance Minister Hans Eichel called for the United States, Europe and Japan to take a common position against the "brutal" rise in the European single currency.
"It's a brutal development, as (European Central Bank chief) Jean-Claude Trichet has said," Eichel said.
The euro was trading at just under 1.30 dollars on Friday morning, changing hands at 1.2955 dollars in Tokyo.
The United States however seems unwilling to intervene to prop up the dollar, whose relative weakness has been caused by the huge US current account and budget deficits.
Eichel appeared Friday to issue a veiled call for the United States to help stem the dollar's fall.
"It can't be in America's interest to allow the dollar to fall quickly," Eichel told German radio DeutschlandRadio Berlin.
"That would also be dangerous for the US economy."
US Treasury Secretary John Snow, visiting Warsaw on Thursday before coming to the German capital, gave no sign of a shift in dollar policy.
Some analysts argue that Washington favours a weaker currency to help exports and the economy but Snow has denied this -- and few observers see any chance of a coordinated move on exchange rates.
"Everybody knows what our position is -- a strong dollar, (and) currency values set in open markets," Snow said.
The dollar this week fell to its lowest level since 1997 against the South Korean won and to its lowest mark against the yen since April.
The head of the Bank of Japan, Toshihiko Fukui, estimated on Thursday that "developments on the foreign exchange and financial markets could create uncertainty for the Japanese economy."
"We will monitor closely these developments and their consequences," he added.
Many observers question the importance of the G20, but US officials have said Washington views the gathering as an occasion to discuss key efforts of economic collaboration, such as debt relief for the poorest nations and reforms at the International Monetary Fund.
As well as the world's Group of Seven wealthy industrialised nations, 13 others are taking part. They are China, India, Russia, Argentina, Australia, Brazil, Indonesia, Mexico, Saudi Arabia, South Africa, South Korea, Turkey and the EU.
The meeting is scheduled to begin with a dinner on Friday evening, followed by two days of talks on Saturday and Sunday.
Publicado por esta às novembro 19, 2004 05:12 PM