G7 warns of disorderly exchange rate moves

Group of 7 leading economies warns on adverse effects of exchange rate volatility

Associated Press

BRUSSELS (AP) -- The Group of Seven leading industrial nations, which includes the U.S., Japan and Germany, are warning that volatile movements in exchange rates can adversely hit the global economy.

In a statement published Tuesday on the Bank of England website, the G-7 says "excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability."

They also say they will "continue to consult closely on exchange markets and cooperate as appropriate" and insist that their respective economic policies are "oriented" towards meeting domestic objectives and not towards setting specific exchange rates.

The G7 statement comes ahead of a meeting in Moscow at the weekend of finance ministers from the 20 industrial and developing countries, where the state of the world economy will be discussed.

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