Russian warns nations over monetary policy

Last Updated: Sun, Feb 17, 2013 03:10 hrs

Moscow, Feb 17 (IANS/RIA Novosti) Countries pursuing a monetary policy that hinges on weakening the national currency in the hope of catalysing economic recovery would be wise to remember the associated risks, Russia has warned.

"These measures could have ambiguous consequences. Central Banks following a supersoft monetary policy must painstakingly track the related internal and external risks," Russian Finance Minister Anton Siluanov said during the G20 Finance Ministers' meeting held here.

"Rebalancing global demand requires a broader package of measures than merely correcting the exchange rate," he said while stressing the importance of structural reform across the board - whether countries have a positive or negative balance of payments.

Earlier this week G7 countries vowed not to use fiscal and monetary policies to influence national currencies' exchange rates. That calmed fears of "currency wars" that had grown as the new Japanese government sought to win new economic impetus through a looser monetary policy and weakened yen.

The Group of Twenty (G20) brings together developed and emerging economies that together account for approximately 90 percent of the global economy.

--IANS/RIA Novosti


More from Sify: