Currency War Carries On as G-20 Meeting Fails to Secure Specific Trade Targets

Despite securing an agreement from Group of 20 (G-20) officials to avoid weakening their currencies any further, the Obama administration failed to convince member countries to implement specific guidelines to measure compliance and monitor trade imbalances. At a meeting last weekend in Gyeongju, South Korea, finance ministers from both developed and emerging economies agreed to try to maintain trade balances at "sustainable levels," which they left to be negotiated at a future date. They were unable to reach consensus on precise targets, as the United States proposed. G-20 members will meet again in Seoul on Nov. 11 and 12. The G-20 was able to hammer out a deal to get China and the United States - as well as the other G-20 nations - to agree to "refrain from competitive devaluation of currencies," and to let markets set foreign-exchange values. China is widely seen as keeping its currency undervalued to boost its exports, while the United States has been accused of pursuing a weak dollar policy, also to increase its overseas shipments.