Russian Finance Minister Feels That G-20 Nations Should Take Strong Stance against Currency Manipulation

The Finance Minister of Russia, Anton Siluanov has urged the Group of 20 nations to take a strong stance against the attempts of manipulating currencies. Siluanov stated that the language used to oppose the exchange rate interference should be specific as the financial chiefs are going to sit for a meeting in Moscow this week. Incidentally, the rotating presidency of G-20 is held by Russia for this year. According to Siluanov, as the Group 20 countries always maintain the position that the currency policy should be linked with the market conditions, the time has come for them to take a firmer stance on the same.

Incidentally, the First Deputy Chairman of Central Bank of Russia, Alexey Ulyukayev, in last month, stated that the world is nearing towards another currency war which marks the attempt of several countries to weaken their respective currencies making the exports more competitive. There has been a major controversy around the rapid decline of Yen, the major currency of Japan. Incidentally, in the last 3 months, Yen has declined by around 17% against USD. While many financial chiefs feel that Japan is unnecessarily being singled out, many feel that the recent actions of Japanese Government were made to make Yen weaker.

The Japanese Prime Minister Shinzo Abe has continuously declined that his Government is trying for devaluing Yen. Rather, according to Abe, the measures were mainly driven in an attempt to end the deflation in the country and revive the economy. Yen surged around 55% against USD for 5 years through 2011 and this hurt the Japanese exporters’ big time. Taro Aso, the Finance Minister of Japan, already stated that the trading partners have no right to question the currency policies of Japan. Apart from that, he suggested that US should be having a stronger USD and also hinted that many of the Group 20 countries have not followed the pledges made in 2009 for avoiding any sort of competitive devaluation.

Anton Siluanov however stated that Japan should be allowed to clarify its monetary policy and its role in controlling exchange rate movements. Siluanov mentioned that it is more important to get to the bottom of the issue, rather than blaming others. Siluanov also commented that Japan should be clearly stating the exact exchange rate policy they will like to follow.