The Group of Seven leading industrial nations, which includes Canada, the United States, Japan and Germany, are warning that volatile movements in exchange rates can adversely hit the global economy.
In a brief statement published Tuesday, the G-7 finance ministers and central bankers say "excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability."
They also say they will "continue to consult closely on exchange markets and co-operate as appropriate" and insist that their policies are oriented towards meeting domestic objectives and "not towards setting specific exchange rates."
The statement came out prior to a weekend meeting in Moscow of Group of 20 Finance ministers where exchange rates and the threat of a "currency war" are expected to feature heavily.
Attention has been centred recently on the Japanese yen, which dropped Monday to its lowest against the U.S. dollar since May 2010. The Japanese government has not directly intervened to get the value of the yen down. But it has set in motion a series of economic policies, such as a higher 2% target for Japanese inflation that many in the markets think will lead to more money being created in Japan.
One parallel effect of that policy has been a rise in the euro, which threatens to make the region's exports more expensive and hinder the economic recovery.
Bank of Canada Governor Mark Carney, who is about to take on a similar post with the Bank of England in July, is scheduled to speak in Ottawa about monetary policy.
