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.
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Alfonso Esparza