G7 warns against excessive currency volatility

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STRESA, Italy (Reuters) – Financial leaders from G7 countries are warning against currency fluctuations that are too volatile and disorderly, according to a draft statement seen by Reuters.

“We reaffirm our May 2017 rate commitments,” we can read in this text.

G7 financial leaders, currently meeting in Stresa, Italy, agree that excessive volatility and disorderly currency fluctuations are undesirable and that countries have the power to act in the market when rates become too volatile.

Tokyo argued that the agreement gave it the freedom to intervene in the foreign exchange market to counter excessive fluctuations in the yen.

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In their May 2017 press release, financial leaders judged that “excessive volatility and disorderly movements in rates can have harmful consequences on economic and financial stability”.

(Reporting by Reuters G7 team; French version Elizabeth Pineau)


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