G20 Summit Opens Today &Nbsp; &Nbsp; &Nbsp; Countries Differ Greatly In Exchange Rate Issues.

From 11 to 12, representing the most important countries in the world. Group of twenty (G20) Leaders will gather in Seoul, Korea for the fifth time. Summit 。 The summit hopes to reach a consensus on the imbalance of global economic recovery. But before the summit was opened, countries were exchange rate And other key issues divergence Still huge.

Currency triggering Civil War

G20 includes the major emerging economies in developed countries and the world. GDP accounts for 90% of the world's total and trade volume accounts for 80%. The twenty countries have also become the main force in the global response to the financial crisis. But this year, the exchange rate dispute brought about by the trade issue also triggered a heated debate within the G20: first, the United States repeatedly pressed the appreciation of the renminbi, triggering a fierce reaction from China. Then the United States suddenly announced the purchase of US $600 billion long term treasury bonds, which triggered widespread criticism and triggered the move of printing money machine to depreciate the US dollar. Global currency war Worries.

At this summit, the issue of exchange rate has also become the focus of debate among all parties. In order to discuss the Seoul declaration, 9 days and 10 days, two days after the summit, G20 representatives launched a heated debate on some key issues, including exchange rate, economic imbalances and quantitative easing measures of the Federal Reserve. However, the meeting failed to reach a substantive consensus. "The discussion was so intense that the meeting room became very hot and anoxic, so we had to leave the door open." Seoul summit spokesman Jin Yunqing said 10.

Consultation is like a quarrel.

It is reported that the 9 day meeting lasted 14 hours, and 40 to 50 delegates squeezed into a narrow conference room. As time goes on, the debate is heating up, and the debate is even more intense when there is a proposal to raise the voice, especially when it comes to a balanced growth plan for the global economy.

At the 10 meeting, the parties basically agreed on financial regulation reform, global financial security network, development agenda, and the reform of international financial institutions.

Jin Yunqing said the delegates left a lot of blanks in the key terms of the joint statement, which means they have not yet reached an agreement. If necessary, negotiations will continue after the opening of the 11 day summit. "Every country sticks to its original position."

Discount on adversity

The delegates put forward some specific potential targets for economic imbalances and discussed the avoidance of competitive currency devaluation. It has been suggested that in the absence of consensus, the G20 summit can propose the IMF guidance policy to reduce trade imbalance in major economies.

Two years after the outbreak of the financial crisis, leaders of the group of 20 hope that the summit will open up a new round of global cooperation in the post crisis era. However, due to the imbalance in the global economic recovery and the inconsistent pace of economic policies in various countries, the 20 nation group's cooperation in compromising the financial crisis has been greatly reduced. Critics have even questioned the role of the group of 20. {page_break}

reaction

Ban Ki-moon: This is a time for unity.

Van Rompuy called for the "exchange rate war" to be avoided as far as possible.

Hermann Rompuy, the permanent president of the European Council, said 9 days during the Seoul summit that only focusing on the short-term interests of the countries would not help to deal with the challenges. We should try to avoid adopting trade protectionist measures to prevent the outbreak of the "exchange rate war".

Despite differences, the group of twenty members basically agreed on strengthening financial regulation and promoting IMF reform before Congress, hoping to bring positive results to the summit.

UN Secretary General Ban Ki-moon called on the 10 member states to strengthen cooperation at the critical moment of the global economy on the 10 day.

"I am concerned about the disagreement on many issues," Ban Ki-moon said at a news conference. "This is the time to unite."

position

The United States overflows the US dollar.

The German Chancellor accused the United States of "shortsightedness", and the president of Brazil said that he had made preparations for "combat readiness".

Before the summit opened a week ago, the Fed's purchase of the $600 billion treasury bond program attracted criticism from all sides. Lula, President of Brazil, said that before he left for Seoul, he had made preparations for "combat readiness".

Economists believe that the Fed's move will mean printing the banknote to increase the printing of US dollars, so that the US dollar will continue to depreciate, so as to stimulate exports in the short term. Its negative impact on the global scale can not be ignored. German Chancellor Merkel told the media that the US policy is "relying on people to lower the exchange rate to stimulate exports". This policy is "short-sighted and will ultimately harm the interests of all parties".

Lula, President of Brazil, commented that the depreciation of the dollar is the root cause of all problems, and he will prepare for the battle before he goes to Seoul to attend the summit of the group of twenty.

Juncker, the chairman of the euro group, also criticized the Fed's policy as unwise and selfish. Russian officials say that the Fed's actions may lead to the formation of new financial bubbles and the imbalance of exchange rates. The group of twenty needs to stop unilateral actions that have the ability to influence the world financial system and individual economies.

"The victims of such measures are not the United States but emerging economies." Russian Deputy Minister of finance Dmitri Penkin said.

On the eve of the opening of G20, US President Obama defended the fed in a letter to G20 leaders. He pointed out that a strong economic recovery, creating jobs, increasing incomes and consumption will be the most important contribution of the United States to global recovery. "The strength of the US dollar will ultimately depend on the US economy."

Tidbits

Han gave Obama the name "Wu Han horse".

At the G20 summit, Obama will receive a special gift: a Korean name - Wu Hanma.

South Korean media reported on the 10 day, the visit to Obama, the Korea US alliance Friendship Association for it has a Korean name, and plans to give the name and famous brand to Obama.

Xu Zhenxie, President of the association, said that after many considerations, Obama had a Korean name "Wu Hanma". Xu Zhenxie said that Obama's first letter "O" is similar to "Wu" in Korean. The first letter of Hossain is "H", which is close to the Korean "Korean" pronunciation. Obama's third syllable is "Ma", and its pronunciation is exactly the same as "horse". For the meaning of "Wu Han Ma", Xu Zhenxie said: "we hope that Wu Hanma can take the lead in the G20 summit in Seoul and make persistent efforts to promote global economic development."

The Korea US alliance Friendship Association presented the names of Korean names to US Secretary of state Hilary, former Secretary of state Rice and others. They were spanlated into Chinese by Han Xishu and Luo Lixiu respectively.