Russia concerned some states seeking weaker currency exchange rate.

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11/11 Tass 94

SEOUL, November 11 (Itar-Tass) -- Russia is concerned over some
countries seeking to weaken their currency exchange rates in order to
boost their economies without coordination with other partners, a source
in the Russian delegation at the G20 summit told Itar-Tass on Thursday.
"We are particularly concerned over the attempts of some countries to
take unilateral decisions to weaken their currency exchange rates in order
to boost their economic growth without coordination with other partners.
We believe that such steps make the participants in the market more
nervous and make the exchange rates of the leading currencies more
volatile inciting fears about the launch of 'the currency wars' on the
international scene," the source noted.
He elaborated that the point at issue is "not only direct
interventions on the currency market, but also the so called indirect
weaker currency exchange rate through injecting the liquidity in the
economy. Alongside, "the creation of the excessive liquidity by the
leading developed countries also poses a serious problem for the countries
with forming markets, because it stimulates a considerable inflow of
venture capital into their markets."
Therefore, the Russian side notes that "the maintenance of stability
of the main reserve currencies, the efficient management of public
finances and the stability of the monetary policy in developed countries
should be the necessary condition for further balanced growth." In this
respect, the necessary condition for a stable, reliable and balanced
economic growth and the mutually beneficial development of the world
economy is "the fulfilment of the coordinated measures under the auspices
of the International Monetary Fund and other international organizations,"
the source said, noting that the attention should be focused on "the
structural transformation of the economies of developed countries and
countries under development."
The U.S. Federal Reserve System has decided within the next eight
months to increase the money mass circulating in the economy to 600
million dollars not secured with the assets. This U.S. measure raised a
harsh criticism from the leading European countries and countries under
development, which warned that this poses a threat of a venture capital
inflow and the inflation growth.
-0-baz/kud