G20 Meeting Ends Hinting the Rise of Protectionist Policies
By Daisy Joseph
The G20 meeting is one of the important events in the financial market, as top financial leaders from the largest economies come together and set the trend for the upcoming months. The experts from various countries had a common opinion about the foreign exchange, but trade agreement faced a huge failure. Globally, the leading economies want to improve the economic growth of individual nations and this has given rise to protectionist policies.
The G20 powers had no difference of opinion about the forex market. This is a welcome news for the investors. It will ensure that the volatility in the forex market will remain relatively low. However, the leaders didn’t agree on a free and open trade. This means that the global economic policies will undergo major changes. The financial markets may not change immediately, but the change is certain.
On Monday, the dollar opened with a modest weakness, because experts didn’t agree upon free trade. If some important changes were made in the forex language, the market could have been much worse. The G20 members agreed to remove warnings against the disorderly forex moves and excessive volatility. They have also agreed not to encourage competitive devaluations. This means that the global leaders want to maintain stable currency markets for strong and stable growth in the future. Steven Mnuchin, Treasury Secretary of the USA emphasized that USA welcomes free trade, but certain trade deals must be renegotiated. Donald Trump is meeting with Chinese Premier Li soon and this could shed light on the direction of the trade negotiations.
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