G20 must work to stabilise international finance-Japan's Noda

Published 10/21/2010, 08:31 PM
Updated 10/21/2010, 08:36 PM

GYEONGJU, South Korea, Oct 22 (Reuters) - A U.S. proposal to set current account targets is "unrealistic" though the Group of 20 needs to affirm the need to avoid a race to the bottom for currencies, Japan's finance minister told reporters on Friday.

Yoshihiko Noda said the group of 20 finance and central bank chiefs do not have a specific currency agenda for their two-day meeting in South Korea that started on Friday and were unlikely to discuss individual currencies while emphasising that exchange rates should reflect economic fundamentals.

"We need to talk about it first, but numerical targets are unrealistic," Noda said about a idea floated by U.S. policymakers to have nations set limits for current account deficits or surpluses at 4 percent of gross domestic product. (Editing by Ed Lane and Tomasz Janowski)

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