Remember this is in the context of just about every country in a race to debase their currency to lift exports and it is CLEARLY going on, to the point that it is being referred to as a "Currency war".
I love the part about, "We Will NOT target exchange rates", except the US Treasury which said it was supportive of Japan doing exactly that just before the statement and of course Japan who is openly doing exactly that and we have seen 2 ECB members, one the President, both target Euro rates, but both in different directions in the past few days!!!!We, the G7 Ministers and Governors, reaffirm our longstanding commitment to market determined exchange rates and to consult closely in regard to actions in foreign exchange markets. We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates. We are agreed that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. We will continue to consult closely on exchange markets and cooperate as appropriate.
The new G7 statement telling us how the entire FX trading complex "MISUNDERSTOOD" what the carefully crafted G7 statement said!!!
- G7 OFFICIAL SAYS G7 STATEMENT WAS MISINTERPRETED, STATEMENT SIGNALED CONCERN ABOUT EXCESS MOVES IN JAPANESE YEN
- G-7 OFFICIAL: G-7 CONCERNED ABOUT UNILATERAL GUIDANCE ON YEN
- G7 OFFICIAL SAYS G7 IS CONCERNED ABOUT UNILATERAL GUIDANCE ON THE YEN, JAPAN WILL BE IN SPOTLIGHT AT G20 MEETING IN MOSCOW
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