“We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates”, the ministers and governors said. “We are agreed that excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability.”
As G7 unity crumbled, the Bank of Canada’s governor said the world’s richest economies should not use monetary policy to target exchange rates. “It is extremely important that we as a G7 go in united and forcefully to the G20 to enlarge that commitment as quickly as possible amongst the major emerging economies in the G20”, said Mark Carney.
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