India likely to stress on holding dialogue to resolve currency war at G-20

GYEONGJU - India is expected to press for intensive engagement to amicably resolve the currency war at the G-20 meeting of finance ministers beginning at Gyeongju, South Korea today.

Gyeongju is a coastal city in the far southeastern corner of North Gyeongsang province in South Korea.

The two-day meeting that will also be attended by the Central bank governors will mainly focus on currency crisis mainly between the US dollar and Chinese yuan.

The visiting Finance Minister Pranab Mukherjee, who is heading the Indian delegation to the ministerial meeting, will also hold separate consultations with the finance ministers of other BRIC nations, namely Brazil, Russia and China, on wide-ranging global economic issues.

Mr Mukherjee said, his approach is to engage the countries into negotiations and build up a consensus through which the currency war could be resolved.

While the US wants China to allow the yuan to appreciate in line with market forces, the Chinese government is resisting the move, as it would hurt the country’s exports.

The currency war has prompted some other countries, especially Japan, to weaken their currencies by pumping more funds into the market. India, which has witnessed about 5.5 per cent appreciation of the rupee against the dollar since January, has not taken a stand on the issue and wants the matter to be sorted out without confrontation in the interest of global financial stability. (ANI)