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G20 Unlikely to Pressure Japan Over Weakening Yen
Reuters | January 28, 2013 | 07:09 PM EST

The world's top economic policymakers are likely to discuss how Japan's new monetary and fiscal policy drive is weakening the yen when they meet next month, but will stop well short of calling it a competitive devaluation, G20 officials said.

Finance ministers and central bank heads from the G20 group of the world's biggest advanced and developing economies gather on Feb. 15-16 in Moscow, under Russia's 2013 presidency.

With the United States, Britain, the European Central Bank and Japan all resorting to unconventional monetary levers to revive their economies, the spillover of such policies and their exchange rate effects will certainly be on the agenda.

(Read More: Japan Defends Stimulus, Yen Policy Under Fire )

"When countries with reserve currencies try to stabilise their economies through monetary policy, it may lead to currency wars," Ksenia Yudayeva, Russia's envoy to the G20 told Reuters.

"It has been discussed a lot already in the G20 and so far there is no solution. And I think it needs additional discussion," she said on Jan. 17..

The Bank of Japan announced last week, in its most determined effort yet to end years of economic stagnation and deflation, that it would buy unlimited amounts of assets in 2014 and double its inflation target to 2 percent.

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