The Group of 20 nations have declared there would be no “currency war” and deferred plans to set new debt-cutting targets in an indication of concern about the fragile state of the world economy.Japan’s policies, which have driven down the yen, escaped criticism in a statement agreed on in Moscow on Saturday by financial policymakers from the G20, which groups developed and emerging markets and accounts for 90 percent of the world economy. After late night talks, finance ministers and central bankers agreed on wording closer than expected to a joint statement issued last Tuesday by the Group of Seven rich nations backing market-determined exchange rates.A draft communique seen by delegates on Friday had steered clear of the G7’s call for fiscal and monetary policy not to be targeted at exchange rates but the later version included a G20 commitment to refrain from competitive devaluations and stated monetary policy would be directed at price stability and growth.“The language has been strengthened since our discussions last night,” Jim Flaherty, Canadian finance minister, said.Agencies
