Officials of the Russian Finance Ministry and the Bank of Russia on Wednesday said they supported the statement issued by the Group of Seven finance ministers and central bankers reaffirming their commitment to market determined exchange rates in a bid to calm rising fears of a global currency war.
The G7 delegates, who represent the advanced economies, on Tuesday had reaffirmed that the fiscal and monetary policies of their respective governments will continue to remain oriented towards meeting domestic objectives using domestic instruments, without targeting exchange rates.
"We share this view," the Bank of Russia's first deputy chairman Alexei Ulyukayev said.
He warned that one-side actions are not efficient in the modern interrelated global world, and measures to revive domestic demand and higher competitiveness through depreciating the exchange rate of a national currency could have only a short-lived impact.
The G7 leaders assured that efforts would be focused on preventing a spiral of retributive devaluations similar to what happened in 1930s, when weak economies took their currencies down in an attempt to boost exports.
The statement came just days ahead of the two-day meeting of the Group of 20 nations, scheduled to begin in Moscow on Friday. The G7 resolution is expected to help guide negotiations on the issue of currency war at the Moscow meeting.
The rhetoric from the Group of Seven nations came amid concerns that the Japanese government led by Prime Minister Shinzo Abe is targeting a weaker yen in its efforts to end deflation.
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