G7 finance chiefs divided on forex market, coordinated policy

Finance chiefs of the Group of Seven (G7) remained apart over the foreign exchange rate and coordinated steps to boost public spending to improve world economic growth after their two-day meeting in Sendai in northeast Japan ended on Saturday.

Japan and the US failed to narrow the gap over the foreign exchange market. Japan is mulling to continue its monetary easing if necessary after the recent appreciation of the Japanese yen, while the US Federal Reserve has sealed off its loosening policy, Xinhua news agency reported.

Meanwhile, Japan called for boosting public spending to drive global economy, but Germany is reluctant to follow the suggestion.

The reports said the policy gap among the finance chiefs may cast a shadow over the outcome of the G7 leaders Ise-Shima summit which will be held next week in Mie prefecture in central Japan.

During the finance ministerial meeting, the ministers agreed to adopt an action plan to block funding to terrorist groups through information sharing and stricter rules on some financing transactions.

The finance ministers and central bankers cited that terrorism, the refugee crisis and a potential exit of Britain from the EU as risks facing the global economy and complicating the economic environment.

--IANS

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