G20 Leaders Fail to Reach Currency Deal

The G20 summit has ended without an agreement to avert a disastrous currency war.

Heading into the meeting in Seoul, the U.S. and China were urging each other to stop policies aimed at devaluing their respective currencies and keeping exports affordable for foreign markets. It was hoped a deal could be reached on what defined unacceptable devaluation policies, but instead the meeting concluded with a joint statement from G20 leaders that contained little more than platitudes. Observers warn that both countries are edging towards dangerous protectionism and that China needs to allow its currency to appreciate in order to shift its export-based economy to a more domestic-oriented one, especially as U.S. buying power decreases. Stephen Harper admitted he was disappointed with the outcome but said, “These things don’t happen over night.”