Main points of final G20 finance communique

MOSCOW Sat Feb 16, 2013 5:59pm IST

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MOSCOW (Reuters) - Following are key passages of a final communique issued on Saturday after a meeting of finance ministers and central bankers from the Group of 20 nations in Moscow.

It was barely changed from a draft obtained by Reuters earlier in the day.

ON EXCHANGE RATES:

"We reaffirm our commitment to cooperate for achieving a lasting reduction in global imbalances and pursue structural reforms affecting domestic savings and improving productivity.

"We reiterate our commitments to move more rapidly toward mores market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments, and in this regard, work more closely with one another so we can grow together.

"We reiterate that excess volatility of financial flows and disorderly movements in exchange rates have adverse implications for economic and financial stability.

"We will refrain from competitive devaluation. We will not target our exchange rates for competitive purposes, will resist all forms of protectionism and keep our markets open."

ON FISCAL CONSOLIDATION:

"To address the weakness of the global economy, ambitious reforms and coordinated policies are key to achieving strong, sustainable and balanced growth and restoring confidence.

"We will continue to implement our previous commitments, including on the financial reform agenda to build a more resilient financial system and on ambitious structural reforms to lift growth.

"We are committed to ensuring sustainable public finances.

"Advanced economies will develop credible medium-term fiscal strategies in line with the commitments made by our leaders in Los Cabos, by the St. Petersburg summit.

"Credible medium-term fiscal consolidation plans will be put in place, and implemented, taking into account near-term economic conditions and fiscal space where available.

"We support action to improve the flow of credit to the economy, where necessary. Monetary policy should be directed toward domestic price stability and continuing to support economic recovery, according to the respective mandates.

"We commit to monitoring and minimizing negative spillovers on other countries of policies implemented for domestic purposes. We look forward to the results of the ongoing work on spillovers in the Framework Working Group."

"Thanks to the important policy actions in Europe, the U.S., Japan and the resilience of the Chinese economy, tail risks to the global economy have receded and financial market conditions have improved.

"However, we recognise that important risks remain and global growth is still too weak, with unemployment remaining unacceptably high in many countries.

"We agree that the weak global performance derives from policy uncertainty, private deleveraging, fiscal drag, and impaired credit intermediation, as well as incomplete rebalancing of global demand.

"Under these circumstances, a sustained effort is required to continue building a stronger economic and monetary union in the euro area and to resolve uncertainties related to the fiscal situation in the United States and Japan, as well as to boost domestic sources of growth in surplus economies, taking into account special circumstances of large commodity producers."

(Editing by Mike Peacock)

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