G-7 Meeting in North Country Ends

February 7, 2010

The Canadian hosts of the weekend meeting of G-7 central bankers and finance ministers relayed a mixed message of global economic progress, much unfinished work, reduced G-7 responsibility, but a continuing informal role for the group in promoting a candid discourse among its members.

The G-20 is now the group responsible for coordinating foreign exchange and other macroeconomic policies, so the G-7 did not release a statement after the meeting, nor were there post-meeting press conference presentations by all the key people who attended.  Oil $71.19 EUR 1.368 Yen 89.3
Verbatim replication of the four sentences on currency policy coordination found in the April 2009 statement, including the sentence about the renminbi.  The statement does not declare victory over the global economic crisis but indicates some progress: “We will keep in place our support measures until recovery is assured.” Oil $69.95
EUR 1.458
YEN 89.8
04/24/09 Washington “Many countries are now playing a major role in the global economy and we welcome their contribution to the collective international effort to promote recovery.  We welcome China’s continued commitment to move … [same text as in prior statement about the Renminbi].” Identical three sentences as Rome statement regarding FX policy cooperation and opposition to excessive volatility and disorderly movements.  A former view that exchange rates should reflect fundamentals remains conspicuously missing from the text. Oil $51.56 EUR 1.324 YEN 97.2


A complete chronology of G-7 meetings since 2001 was included in my preview of the Iqaluit summit.

Copyright Larry Greenberg 2010.  All rights reserved.  No secondary distribution without express permission.

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