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Fiji Time: 11:37 PM on Wednesday 23 April

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Currency wars worry

Bbc.Co.Uk
Saturday, February 16, 2013

THE finance ministers of the G20 group of nations are meeting in Moscow amid concerns over so-called currency wars between the major trading powers.

Japan has moved to force down the value of the yen, and France is concerned about the strength of the euro.

Reports suggest that the G20 will back previous statements warning not to interfere with the market rates of their currencies.

Recently, the G7 rich nations said they would "not target exchange rates".

But the G7 also said: "We have agreed that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability."

That confused markets as to whether the G7 was really sending a message to Japan for forcing down its currency.

Countries attempt to devalue their weaker currencies in order to make their exports cheaper.

The talks will begin on Friday.

The euro has risen by 6 per cent against a basket of other currencies in the past six months.