Despite the fact that the yen has dropped around 20% against the US dollar, sterling has lost around 10% against most other majors, the Venezuelan bolivar was recently devalued by more than 30% and the Swiss National Bank has already pledged to print as many francs as required to defend the 1.20 level against the euro, and theeuro has gained 8.2% versus the dollar in the past six months, at the latest G-20 summit, IMF chief Christine Lagarde denied the existence of any currency war, labeling recent swings in the yen as "market reaction to exclusively internal decision making".
After their two-day meeting in Moscow, and probably after patting each other on the back for the amazing work they have all done, G20 leaders agreed to a joint statement pledging that they would refrain from competitive devaluation and resist all forms of protectionism and keep markets open.
"We will refrain from competitive devaluation. We will not target our exchange rates for competitive purposes," the G-20 financial leaders said in a closing statement after meeting in Moscow on Friday and Saturday.
While finance ministers and central bank governors promised not to devalue ...