G7 Moves to Prevent Currency Wars
ThinkstockThe Group of Seven nations have agreed to provisions to prevent currency wars. The prospect that countries might protect their trade via currency valuation manipulation has become greater recently. The drawback to the announcement is that the G7 nations are…
The Group of Seven nations have agreed to provisions to prevent currency wars. The prospect that countries might protect their trade via currency valuation manipulation has become greater recently.
The drawback to the announcement is that the G7 nations are the old developed economies of the United States, Japan, Germany, France, Italy, Canada and the United Kingdom. That leaves action by China, Brazil, Russia and India in particular out of the mix. Each has trade issues that might tempt it to view currency valuation as a weapon.
In a statement issued by the U.K. Treasury on behalf of the group:
We, the G7 Ministers and Governors, reaffirm our longstanding commitment to market determined exchange rates and to consult closely in regard to actions in foreign exchange markets. 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. We are agreed that excessive volatility and disorderly movements in exchang [sic] rates can have adverse implications for economic and financial stability. We will continue to consult closely on exchange markets and cooperate as appropriate.
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
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A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
