UPDATE 1-Germany wants G20 to accept G7 currency statement

Wed Feb 13, 2013 8:06am EST
 
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* Official hopes FX question concluded with G7 statement

* Germany will push for structural reforms in Moscow

* Financial market regulation not gone far enough yet

By Annika Breidthardt

BERLIN, Feb 13 (Reuters) - The Group of 20 industrialised nations should endorse market and not politically driven exchange rates in line with the position held by its G7 members, a German government official said on Wednesday.

The Group of Seven powers said on Tuesday fiscal and monetary policies would not be directed at devaluing currencies, a statement meant to soothe nerves that Japan was aiming to guide the yen lower with aggressive expansion of monetary policy.

"I'm very glad that we have hopefully concluded the question of exchange rates for now and preliminarily with a new G7 statement ... which all G7 members accepted and I hope the G20 will also accept," the official told reporters.

G20 finance ministers and central bankers meet in Moscow on Friday and Saturday and sources said it was unclear whether they would issue a fresh statement on currencies, refer to their November 2012 statement or simply mention foreign exchange in their final communique.

France has called for coordinated action to counter the euro's strength and avoid damaging an economic recovery, but got a cool response, with policymakers stressing instead that countries should focus on boosting their competitiveness.   Continued...