South Korea has warned of the international tensions over foreign exchange policies, vowing for a firm action against the spread of trade protectionism.
Addressing a government meeting of heads of economy-related ministries on Friday, South Korea’s Finance Minister Yoon Jeung-hyun cautioned that tensions over the currency issue could inflict damage on the world’s economic recovery.
“With the recovery slow in the advanced countries, each country relies more on exports for growth, and tension surrounding foreign exchange rates is intensifying, and there are signs that this could develop into trade protectionism,” Reuters quoted the official.
The minister said that Seoul which will host the upcoming G20 summit would take measures to counter such foreign exchange policies stressing that the meeting “will set firm rules to guard against disruptions to trade.”
Yoon also emphasized that his country will ‘boldly act against any moves related to such protectionism.”
The dispute over China’s allegedly undervalued Yuan is envisioned to overshadow the meeting as US has accused Beijing of deliberately keeping the value of the Yuan low to help its exporters at the expense of other countries.
The summit scheduled for November 12 to 13 seeks to tackle global problems such as the current economic crisis.