Siluanov said that it was acknowledged by delegates that changes in currency value can be brought about by particular situations such as a fall in the price of exporter countries' raw materials, as has happened to oil-producing countries such as Russia. However, he remarked: "There are cases, where countries try to artificially change the exchange rate, in order to gain a competitive advantage. In this regard we are in agreement that this is wrong, it is impermissible, which has already been stated by ministers at previous G20 meetings."
The finance leaders are in Istanbul for the annual summit of the G20 this week, at which experts have warned that comprehensive reform policies need to be implemented in order to tackle slow economic growth. "There is a lot at stake," wrote Christine Lagarde, Managing Director of the IMF on Friday, ahead of this week's meeting. "Without action, we could see the global economic supertanker continuing to be stuck in the shallow waters of sub-par growth and meager job creation."
The term "currency war" was first used by Brazilian Finance Minister Guido Mantego in 2010 to describe interventions being carried out by economies such as Japan, China and Switzerland to drive down the value of their currencies and cheapen exports.
The topic was discussed at the World Economic Forum in Davos last month, with President and CEO Gary Cohn of Goldman Sachs telling a panel discussion that "we're in currency wars." Cohn pointed to the Bank of Japan's monetary easing policy, which was expanded in October 2014 to ¥80 trillion ($726 billion) of government bond purchases per year, and the knock-on effect on the exportability of the Eurozone, which reacted in January with its own €1.1 trillion (£834bn) stimulus package.
