g20 finance chiefs meet to calm jitters over chinas slowdown
Last Updated : GMT 06:04:58
Arab Today, arab today
Arab Today, arab today

G20 finance chiefs meet to calm jitters over China's slowdown

Arab Today, arab today

Arab Today, arab today G20 finance chiefs meet to calm jitters over China's slowdown

Turkish Prime Minister Ahmet Davutoglu
Ankara - AFP

G20 finance ministers and central bank chiefs from the world's top 20 economies met in Turkey on Friday hoping to calm the nerves of markets rattled by China's slowing performance and the prospect of a US rate hike.

The finance chiefs gathered for the two-day meeting in Ankara under Turkey's G20 presidency -- a role that in 2016 goes to China -- at a time of some alarming indicators from the global economy, in particular from key emerging markets.

But a source close to the talks said that it is not likely the two major sources of concern -- China's slowdown and the US Federal Reserve's monetary policy -- will be directly referenced in the final communique.

"It's not the way things are done here" at the G20 said the source, adding it would be highly unusual for the statement, whose every word is negotiated months in advance, to refer to a specific central bank or country.

It would also be next to impossible to produce a unified text on the issue, with major divergences between the economic superpowers of the world.

The United States has already publicly rebuked Beijing for the opacity of its statistics and its strategy of supporting the domestic economy before anything else.
US Treasury Secretary Jacob Lew said on Thursday that he would be looking for China's leaders to take responsibility for their sharp devaluation of the yuan in August and improve transparency.

The managing director of the International Monetary Fund, Christine Lagarde, has urged the world's top economies to be vigilant in the face of the consequences of a slowing Chinese economy, which has already caused panic selling on global stock exchanges and a further sharp fall in the price of oil.

But a senior government source from a major economy insisted there was "no need to stigmatise anyone" and noted that the Chinese stock market's fall of 40 percent came after it had doubled in value in recent times.

"There is no sense that China is going to be put in the dock for the accused," the source said.

"We have every confidence in the capacity of the Chinese government but it has to communicate in a clearer way."

- 'Crisis proportions' -

As well as China, markets have also been shaken by uncertainty over the future monetary policy of the Fed.

Markets have for months been speculating about the possibility of a rate rise from the Fed's September 16-17 policy meeting, which could be justified on the grounds of the robustness of the US economy.
But a tightening of US monetary policy would also have the effect of hoovering up liquidity from the global economy -- bad news for key emerging markets like Brazil and Russia which are in a deep slump.

It would also be worrisome for host Turkey which has seen its own growth slow amid persistently high inflation and a sharp fall in the value of its currency.

The Turkish Lira on Friday hit a new low in value against the dollar, smashing through the 3.0 ceiling to hit 3.01 to the dollar, a loss on value of 1.25 percent on the day.

London-based consultancy Capital Economics said that on some measures the slowdown in emerging markets in the second quarter of this year means their growth is now not much faster than developed markets.

"In pretty much every case (in the second quarter), growth slowed and several major emerging markets, notably Brazil and Russia, are now in recession," its chief emerging markets economist Neil Shearing said in a note to clients.

The Institute of International Finance, an industry association, said the recent decline in equity and currency values in several emerging markets "has reached crisis proportions".
Even if the Fed were to postpone the mooted rate hike until later this year "it would provide only short-term relief", it added.

The IMF indicated Thursday that the Fed has the room to hold off from raising interest rates for the moment amid a "pretty bumpy" global economic situation.

The Fed has held its benchmark federal funds rate at the zero level since 2008 to pull the US economy back from crisis.

In a closely watched release, the US Labor Department said Friday the unemployment rate fell to 5.1 percent, the lowest since early 2008, but economists said the data would not push the Fed to raise interest rates.

US and European markets tumbled after the release, with investors apparently still uncertain over the Fed's intentions.

Meanwhile with concern growing over the risks encountered by migrants, Turkey's Labour and Social Security Minister Ahmet Erdem said the G20 discussed how labour migration could help economies.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

g20 finance chiefs meet to calm jitters over chinas slowdown g20 finance chiefs meet to calm jitters over chinas slowdown

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

g20 finance chiefs meet to calm jitters over chinas slowdown g20 finance chiefs meet to calm jitters over chinas slowdown

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday