This could cause a huge drop in Gold Prices.
Group of 20 vows to avoid currency devaluations.
Group of 20 vows to avoid currency devaluations.
Global finance leaders, under pressure to show unselfishness in their economic policies, agreed Saturday to boost cooperation on rebalancing the world economy to help defuse tensions that had sparked fears of damaging trade conflicts.
The Group of 20 vowed to avoid potentially debilitating currency devaluations and reduce trade and current account imbalances, amid a growing recognition that restructuring the world economy is necessary to accommodate the greater role played by fast-growing China and other developing economies.
G-20 finance ministers and central bank governors met for two days in the South Korean city of Gyeongju ahead of a summit of their leaders in Seoul next month. Just two weeks ago, a G-20 meeting in Washington failed to resolve differences that had led to fears of a possible trade war that could trigger another economic downturn.
Nations in Asia and other regions have been trying to stem strength in their currencies amid sustained weakness in the U.S. dollar out of fear their exports will become less competitive in world markets. At the same time, China's currency, the yuan, has been effectively pegged to the greenback, provoking criticism that it is being kept artificially low and giving China's exporters an unfair advantage.