G-20 pledges to refrain from currency wars

The G-20 recently finished a two-day meeting in Korea. The topic of the discussion was the “currency war” that is happening between industrialized countries and developing ones. The United States has denounced for years now developing countries such as China that have “have allowed their currencies to trade at artificially low levels”. On Saturday the G-20 ministers however agreed that they will allow their currencies to move towards a market determined exchange rate system. The refraining from competitive devaluation of currencies is good news for the United States government considering the vast trade deficit that it has now. The G-20 also agreed to give emerging countries more seats in the board of IMF.