22 Oct 2010

Currency concerns likely to dominate G20 meeting

3:12 pm on 22 October 2010

Finance Ministers from the G20 leading economies are due to begin a two-day meeting in South Korea.

The discussions are likely to be overshadowed by continuing tension over exchange rates.

The G20 is trying to find a coordinated path out of the financial crisis and a pressing challenge may be to agree on a common approach to the problems in the currency markets.

All the signs are that the finance ministers will struggle to make significant headway, the BBC reports.

Many developing countries are concerned about upward pressure on their currencies, which could make their exports less competitive.

Behind that pressure are very low interest rates in rich countries which have led investors to seek better returns in emerging currencies. That tends to push currencies higher.