G20 Convenes in Seoul to Avert ‘Currency War’

Stephen Harper is calling for unity to avoid a potentially disastrous economic battle between the U.S. and China.

Some observers say that the fate of the G20 itself depends on meetings over the next few days in South Korea. Canada and the U.S. are at an impasse with China because they believe Beijing is deliberately devaluing the yuan in order to make its exports cheaper and more attractive to foreigners. But last week the U.S. Federal Reserve drew foreign ire when it announced a new round of ‘quantitative easing,’ a policy designed to stimulate the economy but that also has the effect of devaluing the U.S. dollar. In a letter released before the summit, Harper urged G20 nations not to retreat into protectionism and to work together to ensure economic prosperity for all.