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G7 not expected to shift FX language-source

Published 10/02/2009, 10:42 AM
Updated 10/02/2009, 10:51 AM

ISTANBUL, Oct 2 (Reuters) - Group of Seven policymakers are not expected to change their usual language on currencies in a communique on Saturday, a G7 source told Reuters.

G7 finance ministers and central bankers are expected to produce a short communique when they finish a meeting on Saturday after much debate over whether any statement was needed at all given leaders from the wider G20 forum met last week.

The communique, however, is not expected to diverge from the language used in April when the G7 last met.

"Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We continue to monitor exchange markets closely, and cooperate as appropriate," G7 finance ministers and central bankers said at the time.

"You should not be looking for any shift," the source said on Friday.

What was less clear, the source said, is how China would be treated in the future given that past G7 statements have called on Beijing to let its currency appreciate and now China is part of the G2O group of developed and emerging economies, which is meant to become the world's premier economic forum.

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