G20 means G7 no longer only game in town on forex

September 30, 2009 Share Print 0

The G7 — the United States, Britain, France, Japan, Canada, Germany and Italy — say they will still meet periodically, starting this weekend on the sidelines of an annual International Monetary Fund meeting in Istanbul.

But their ability to act quickly and decisively within the larger G20 may be diminished, particularly if China, with its war chest of $2 trillion in currency reserves, is not on board for any proposed changes.

Last weekend’s G20 summit, with its rebalancing pledge, is a case in point. While exchange rates may have been discussed behind closed doors, there was no official mention of currencies, much less any coordinated action.

Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.