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    Russia to voice concern over unilateral economic decisions at G20 - source

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    Russia will voice its concern over some countries' decisions to weaken their currencies without consultations with partners as it makes markets jittery and raises fears of the start of currency wars, a source in the Russian delegation to the G20 summit said on Thursday.

    Russia will voice its concern over some countries' decisions to weaken their currencies without consultations with partners as it makes markets jittery and raises fears of the start of currency wars, a source in the Russian delegation to the G20 summit said on Thursday.

    "We are not only talking of direct interventions on the foreign exchange market, but also of indirect exchange rate weakening through pumping liquidity into the economy. The creation of excessive liquidity by leading developed countries is also a serious problem for emerging states as this generates a considerable speculative capital inflow to their markets," he said.

    Earlier in November, presidential aide Arkady Dvorkovich said that Russia wanted G20 states to coordinate their important financial decisions with other group participants following the U.S. Federal Reserve System's decision to increase monetary supply by 30%, which many analysts say will cause speculative bubbles on global markets.

    The source said that the Russian delegation believes that supporting stability of the main reserve currencies, effective management of public finances, and a stable monetary policy in developed countries were an indispensable condition for further growth.

    "This is why coordinated measures taken under the auspice of the IMF and other international organizations are a necessary condition for stable, sustainable and balanced economic growth and the achievement of a mutually profitable development of the global economy," he said.

    "The utmost attention should be paid to structural changes in the economies of developed and emerging states."

    He also said that global economy was in a "vicious circle, where governments of leading developed countries are obliged to allocate considerable resources to save banking institutes, which result in poorer budget indices and the necessity to cut other state expenses."

    An aging population in the developed countries also puts severe strain on state debt and budget deficits, he said.

    SEOUL, November 11 (RIA Novosti) 

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