(MENAFN- Kuwait News Agency (KUNA)) The European Union Tuesday welcomed the statement released earlier today by G7 on currency exchange rates.
"Excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability," EU Commissioner for economic and monetary affairs, Olli Rehn, told a press conference after a meeting of EU finance ministers in Brussls this afternoon.
He noted that exchange rates have an impact on growth and inflation, and thus they have an indirect impact on policy making concerning monetary policy and other policy areas.
"That's why we welcome today's statement by G7," said Rehn.
He also said that the G20 has committed to consult closely with regard to actions in exchange markets and to cooperate as appropriate.
The forthcoming G20 meeting in Moscow will discuss the exchange rate issue, noted Rehn. "I expect that this commitment will be reaffirmed in Moscow, as it has been today reconfirmed by the G7 in the joint statement," he added.
In the last six months, the euro has risen by 6% against a basket of other currencies raising concerns about its effect on European exports.
Meanwhile, EU finance ministers in a statement emphasized that the growth and debt challenges confronting the EU economy "continue to be serious." "Improving confidence and reviving economic growth, ensuring debt sustainability and improving competitiveness, .... are the main priorities at the current juncture," it said.
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