G20 facing the war of currency

Concern the Group of Twenty (G20) summit on Thursday (November 11) will be held at the South Korean capital Seoul. The summit will focus on expected exchange rates, trade imbalances, the international financial system to help poor countries, trade protectionism and other issues.

Major problems and these problems have a direct relationship with China.

In the exchange rate, over a considerable period of time the U.S. asked China yuan revaluation, that China's artificially low exchange rate of its exports an unfair advantage.

However, China firmly denied, although the renminbi against the U.S. dollar has continued to rise. G20 summit in the exchange rate of RMB against the U.S. hit a record high, is considered the summit is dedicated to a "trifle."

Chinese President Hu Jintao to attend the summit in the South Korean media prior to receiving a written interview that "China is facing great pressure in the case of keeping the yuan basically stable, and independent initiative, controllability and gradual steady progress in the principles of the RMB exchange rate formation mechanism reform. "

He also continued the Chinese government has criticized the United States, saying that "China will try to do a good job themselves, their problems will not blame others."

According to reports, members of the discussion before the meeting communique concerning the exchange rate, but did not specifically mention any country.

Imbalance
As the U.S. unemployment rate remains high, the economy is still no improvement, the U.S. implementation of the "quantitative easing policy." The policy by buying bonds that is the way the Federal Reserve to inject liquidity into the market and further stimulate the U.S. economic recovery speed.

Economists Alwi Desa Manny In an interview with BBC interview, Bradley said, "The U.S. policy of flooding the market, and some access to international markets. So the real currency of war is the United States wanted the dollar to depreciate, while China's efforts to stop the depreciation of the dollar while maintaining their own currencies low. "

He said the two countries hope to expand U.S. exports, or like the United States to export their way out of economic recession, or by exports as China access to high growth.

The summit, co-operation between countries will be how to deal with the U.S. to take the quantitative easing policy, will be another issue of concern.

Preview
G20 is the Group of Eight, the European Union and some Asian, African, Latin American, Pacific Island country of 20 finance ministers and central bank governors in the December 16, 1999 in Berlin, Germany initiated a meeting.

In 2008, after the global financial crisis, countries in the world that must be united to jointly deal with the crisis facing, then held the G20 (Group of Twenty) summit.

Some analysts believe that if the fifth summit of this issue in the exchange rate can not reach agreement, in addition to China, India, Brazil and several other countries, rapid economic growth, the global economy will remain stagnant.

The summit will also directly affect the outcome of G20 in the future in the global impact of economic affairs.

Before the summit, British Prime Minister Cameron to accept South Korean media said he believes the current G20 summit for the world to play the highest forum for economic cooperation, the role of the economic crisis should develop into an effective cooperation mechanism.

Conference, France has commentary warned that "the world war imminent, not nuclear war, but the currency war, if the G20 can not control its outbreak, it will have a lot of damage consequences."