Istanbul: Finance ministers from the Group of
Seven rich countries face concerns over the future of the US
dollar as they meet today in a forum whose role is
increasingly in question.
There was even some uncertainty ahead of the meeting
whether the G-7 would issue a joint statement in the wake of
the Group of 20`s decision in Pittsburgh last week to declare
the G-20, which includes developing countries such as China,
Brazil and India, as the world`s premier economic forum.
That such a possibility even arises gives a further sign
that power is shifting from the G-7 to the G-20. The G-7
nations are the United States, Japan, Germany, France,
Britain, Canada and Italy.
Despite the question marks, the finance ministers, who
will be joined by their central bankers, have a number of
issues to discuss as the world economy begins a slow recovery
from the deepest recession since World War II.
Chief among these is likely to be the dollar, which has
been falling in foreign exchange markets in recent weeks and
months. In recent days, it sank to an eight month low against
the yen and nearly hit a year-high against the dollar,
prompting concerns that a dollar crisis could bring the world
recovery to a grinding halt.
The dollar won some respite yesterday ahead of the
meeting as higher than expected US job losses for September
stoked a flight towards safe haven assets the dollar usually
garners support in such situations.