Currency wars not that huge a bogey – Russia’s Deputy Finance Minister

Published time: February 13, 2013 09:58
Edited time: February 13, 2013 14:17
AFP Photo / Atta Kenare
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While experts around the world warn against the drastic effects currency wars could produce on the global economy, “it’s not something that’s going to bring the world to its end,” Aleksey Moiseev, Russia’s Deputy Finance Minister, told RT.

“I wouldn’t overdramatize the issue,” Moiseev told Business RT.

Currency wars, or an artificial devaluation of currencies aimed at making domestically produced goods more competitive in the global market, has become one of the key concerns for experts. While creating undoubted advantages for exporters, the move creates a risk of spurring inflation, as well as hurting neighboring economies. On top of that, as any war, it could create geopolitical tension.

“I think, the effectiveness of the attempts by various countries to depreciate their currencies would be quite low,” Moiseev commented.

Action over currency wars came from the Group of G7 nations on Tuesday, when they said they would leave their currency exchange rates to market forces.

"We reaffirm that our fiscal and monetary policies have been and will remain oriented towards meeting our respective domestic objectives using domestic instruments, and that we will not target exchange rates," they said.

Stimulating real growth and attracting foreign investment are far more important issues, the Deputy Finance Minister stressed. The topic is set to come to a center stage at a two – day G20 meeting in Moscow, scheduled to start on February 15.

“The most important topic, in my opinion, would be stimulating foreign investment. We understand that this is the main challenge for this world to generate enough investment to support growth.”

“Second, of course, we expect to discuss new concepts of debt management, debt levels and sort of best standards of countries should behave in the face of that problems and so on,” Moiseev told RT.

Finance Ministers and the heads of the Central Banks of G20 nations will meet in Moscow this week ahead of the main September G20 summit in Moscow. This will be the first time Russia will host the meeting – an event that has taken place at least once a year since 1999.

Comments (4)

Ivan (unregistered) 13.02.2013 17:12

I do not care what the experts and pundits exclaim. I see the world as it is. That world can not go on with limitless credit and debt. It's that simple, and global economic collapse is a mathematical certainty. Only fools will be caught by surprise when it soon happens. The band only played on until the Titanic SUNK.

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big-one5 (unregistered) 13.02.2013 12:38

Russia needs to create it's own virtual signatures to transfer money. That's how Iran currency became devaluated. Once they refuse to sell them those , Iran currency lost it's value. Reason? Counterfeit money. Guess who counterfeit it and also refuse to sell them verification codes. Russia should create it's owns. Get the S.K to do it. Not the international one. If Russia works hard on counterfeit money removal , the money will gain good values.Also opening reserves of rare earths and other precious materials at even a higher pace. And never sell it. On notes yes. Russia is beginning new phases. And the industry it keeps creating will eventually gain points. What Russia needs the most is new machinery and tools creation. And don't make the mistake of  "YOUNGER MANAGEMENT IS BEST". I discussed at Universities and proved the same. You never ever replace the old management wit inexperienced one. Russia needs Food market. Fast food. Globalization is a plus. And buy abroad all types of industries and bring them in. A Russia Walmart would do great. But Russian invented. Use the leverage of SCO , CIS, and other entities to promote it.

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birchwood (unregistered) 13.02.2013 12:12

Mr. Moiseev, makes a good point...... For everything will wash out in the end.

Mr. Putin, Mr. Medvedev, and all the others assisting, it seems have brought "common sense" back to Russia's way of life domesticlly and financially.  We now observe postive happenings throughout Russia.

In doing so, others (Countries without a "true" foundation of civilized life for its people) will envy and as History teaches, attempt to portray Russia in a "dim light" or as a "whipping post"............... ...And we see this happening now................. .. "Stay the course" as others around self destruct............ .... Or perhaps, Baronness Ashton of Upholland (with possibly at least a 6th grade education in real life) may be directing Russia's Financial Dealings............ ........

A simple explanation:  This may sound harsh, but look at Sec. of State John Kerry's wife who spent,with her parents,much of her life in Africa helping people.............. .. She has done much more in her life time than I, humbly or the person mentioned in the previous paragraph, could ever do.

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