G7 Commit Not To Have Currency War

The world's industrialized nations pledged to avoid attempts exchange rate devaluation to pursue stronger economic growth. The promise was made ​​to calm fears of a currency war that erupted.

The promise is expressed in a joint statement of finance ministers and central bank governors of the G-7. "Fiscal and monetary policy is still oriented to meet our respective goals in the country to use domestic instruments. We will not target the exchange rate," he said.

The G-7 consists of the United States (U.S.), United Kingdom, Italy, Japan, Germany, Canada, and France. Currency wars feared would happen as the policy of Japan to weaken the yen to pursue increased exports and increased inflation and concern followed by other countries in Europe and South Korea. "There is no serious effort to stop the yen's fall," said Adam Cole, global head of foreign exchange strategy Royal Bank of Canada.