G20 final document to address U.S. policy impact on emerging markets

Thu Feb 20, 2014 6:01am EST
 
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By Lidia Kelly

MOSCOW (Reuters) - The world's financial leaders will address the impact of U.S. monetary policy on emerging markets in a final document from their meeting this week in Sydney, but the wording has yet to be agreed, a Russian G20 official said.

Finance ministers and central bank governors from the Group of 20 major developing and advanced economies, which acts as a steering committee for global economic policy, will meet on February 22-23.

Major policy breakthroughs, including on global growth, investment, financial regulation or cooperation in cross-border taxation are unlikely to emerge from the meeting, the first under Australia's helm, the source said.

The focal points will be the slowdown in China's economic growth and the selloff in emerging bond, currency and stock markets that erupted last month after the U.S. Federal Reserve began to run down its monetary stimulus policy.

Emerging market nations will demand clarity from the United States, said the Russian official, who is involved in preparations for the meeting.

"At this moment, we do not have a clear understanding of whether some responsibilities will be taken or whether there will be some agreements that will minimize the negative impact from these (U.S.) measures," said the official.

The final communiqué will address the issue.

"We have a preliminary version, but it is still a very rough draft, especially when it comes to that very point," the official said.   Continued...

 
Investors look at computer screens displaying stock information at a brokerage house in Qingdao, Shandong province February 10, 2014. REUTERS/China Daily