Seoul (AsiaNews / Agencies) - The finance ministers of the 20 largest economies (G20) are meeting today in Gyeongju to try to resolve what is now called a global "war of currencies" and prepare for the G20 summit to be held November 11 to 12 in Seoul.
The United States accuses China of keeping the value of the Yuan artificially low, thereby increasing its competitive trend in exports. U.S. Treasury Secretary, Thimothy Geitner has even accused Beijing of being a "currency manipulator". On the other hand, the U.S. has lowered interest rates so as to penalize the currency of other nations, including Japan.
Before the meeting in Gyeongju, Washington made it clear that it wants other G-20 countries to get serious about letting currencies rise and fall freely in the market. China is opposed to the appreciation of the Yuan, but just a few days ago the Central Bank of China raised interest rates, creating the possibility for a slight appreciation of the renminbi.
It is likely that everything will be resolved tomorrow, in a generic statement that calls for countries to " refrain from competitive undervaluation " and move towards a more market-determined exchange rate.
Representatives of the G20 will also discuss reform of the IMF, seen by many as the referee in all currency conflict. At present, the structure is determined by the more developed nations. The governance structure of the institution is expected to be reviewed at the Seoul meeting.