ICC warns G20 leaders over currency wars
The International Chamber of Commerce (ICC) on Friday said it has become increasingly concerned by international economic frictions over so-called 'currency wars,' as several nations have accused each other of manipulating exchange rates in order to gain a competitive advantage for their exports.
The chamber issued its concerns ahead of the G20 Summit of world leaders in Seoul in November.
'International tensions over exchange rates are not only hampering the rebalancing of the world economy,' said ICC Chairman Rajat Gupta. 'They are also courting the dangerous risk of degeneration into protectionism. Currency wars could rapidly become overt trade wars. As in the 1930s, that might well lead to a major slump in economic activity worldwide.
'ICC has been heartened that the meeting of G20 finance ministers in Korea last week appeared to recognize the dangers of unilateral action by countries and agreed upon a policy framework aimed at addressing global economic imbalances through a collaborative, coordinated and multilateral approach with an enlarged role for the International Monetary Fund. That is what is needed ' and we hope the ministers' aspirations will be successfully reflected in deeds as well as words.'
ICC warns G20 leaders over currency wars
