As the G20 in Seoul discussed the ‘currency wars’, ActionAid International called on world leaders to remember the poor and vulnerable that will be most affected by their decisions. Soren Ambrose, ActionAid International’s International Finance policy expert said from Seoul: “The G20 leaders may sign a temporary ceasefire in Seoul, but the ‘currency wars’ will persist. Leaders must acknowledge that a ‘system’ of massive deficits, surpluses, and accumulation of dollar reserves, with developing countries subsidising the US economy, is simply no longer sustainable.
According to Ambrose, the casualties in this war will be the developing countries that can’t defend against hot money flows and the threat of rising prices. The G20 leaders must act now to aim for a lasting peace by examining new proposals for a neutral world reserve currency that can end the distortions before next year’s summit.