ECB Noyer: G20 deal aims to stabilise main currencies

Published 10/23/2010, 04:23 AM
Updated 10/23/2010, 04:28 AM

GYEONGJU, South Korea, Oct 23 (Reuters) - European Central Bank governing council member Christian Noyer said that a G20 deal agreed on Saturday was aimed at securing the stability of major currencies and avoiding the formation of fresh asset bubbles.

"It means that we want to promote the maximum stability amongst the major currencies because that will reduce the risk of abrupt movements including capital flows which may facilitate asset bubbles in emerging markets or the diffusion of inflation," Noyer, the governor of the Bank of France, told a joint news conference with French Economy Minister Christine Lagarde.

Lagarde said the G20 finance ministers' meeting hosted by South Korea had exceeded her expectations, in particular by clinching agreement on reform of the IMF.

"It was a long expected reform that is really shifting the balance of power and making space for all economies including emerging markets," she said. (Reporting by Daniel Flynn; Editing by Tomasz Janowski)

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