Reuters reports that a G20 source is downplaying the likelihood of a deal on FX rates at this weekend’s G20 finance ministers meeting.
India, China and German oppose caps on current account supluses and FX norms, the source says. There is language about competitive undervaluations in a working paper but there is not yet a draft comunique.
No deal means the status-quo in FX markets: Intervention by emerging market central banks and reserve diversification into EUR/USD.
