Forex rebates on every trade - win or lose!

ROME (Dow Jones)--The Group of Seven leading developed economies Saturday said they are committed to avoiding protectionist measures, and will also try to ensure that the actions they take to combat the recession don't harm other economies.

In a statement released at the end of their two-day meeting here, finance ministers and central bankers from the G7 also welcomed China's commitment to move to a more flexible exchange rate, and said that should lead to a further appreciation of the yuan.

Canada, France, Germany, Italy, Japan, the U.K. and the U.S. are members of the G7.

"The G7 commit to take any further action that may prove necessary to reestablish full confidence in the global financial system," the statement said. "We will continue to work together and to cooperate to avoid undesirable spillover and distortions."

G7 finance officials said they won't resort to protectionist measures, and will work to complete the Doha round of talks to further free world trade.

"The G7 remains committed to avoiding protectionist measures, which would only exacerbate the downturn, to refraining from raising new barriers and to working towards a quick and ambitious conclusion of the Doha Round," the draft said.

The comments come as some countries, including Germany, have expressed concern about protectionist tendencies following a "Buy American" provision in the U.S. government's $787 billion economic stimulus package that requires that purchases for infrastructure spending come from the U.S.. The French government's plan to lend auto makers EUR6 billion in exchange for a pledge not to cut jobs has also raised concerns about a slide towards economic nationalism.

The G7 had encouraging words for China, welcoming its contributions to combating the global economic slowdown.

"We also welcome and appreciate the prompt macroeconomic response from others throughout the world," the statement said. "In particular, we welcome China's fiscal measures and continued commitment to move to a more flexible exchange rate, which should lead to a continued appreciation of the Renminbi in effective terms and help promote more balanced growth in China and in the world economy."

The G7 agreed a set of principles that should apply to their fiscal policy initiatives. Finance ministers said stimulus packages should be "frontloaded and quickly executed."

They also agreed that they should include "an appropriate mix" of higher spending and tax cuts to boost domestic demand and job creation.

Measures should also "address structural weaknesses" in each economy so as to boost long-term growth.

But fiscal stimulus measures must also "be consistent with medium-term fiscal sustainability and mostly rely on temporary measures," G7 officials agreed.

The G7 repeated its long-held views on foreign exchange markets.

"We reaffirm our shared interest in a strong and stable international financial system," the statement said. "Excess volatility and disorderly movements in exchange rates have adverse implications for economic growth and financial stability. We continue to monitor exchange rates closely and cooperate as appropriate."

No other currency was explicitly cited in the communique, which said that the meeting had taken place "amid an ongoing and severe global economic downturn and financial turmoil."

G7 members said they view the stabilization of the world economy and the global financial system as their top priority, and that they will work together, using a full range of policy tools, to reach that goal.

G7 members will also said that they are committed to taking further action to restore confidence, but that their response to the global financial crisis has been prompt and vigorous and its effect will build over time.

The G7 said urgent reform of the global financial system is needed to correct fundamental weaknesses that have been highlighted by the current crisis.

"We agree that a reformed IMF (International Monetary Fund), endowed with additional resources, is crucial to respond effectively and flexibly to the current crisis," the draft said.

The G7 also stressed the need "to support emerging and developing countries access to credit and trade financing, resume private capital flows" and added that it's committed to "explore urgently" ways to improve this support, such as through multilateral development banks.

The ministers and central bankers welcomed a $100 billion loan to the IMF from the Japanese government that was signed here Friday.

The IMF which seeks to double its funds to $500 billion amid the current crisis in which several countries have called on the IMF to provide bailout packages.

So far, $50 billion of the IMF's current $250 billion fund has been used up.

In addition, the G7 said that "increased collaboration between the IMF and the expanded Financial Stability Forum will be particularly important to develop a timely and reliable assessment of macro-financial risks."

The group also aims to accelerate reforms of the regulatory framework including scope of regulation procyclicality, compensation practices, market integrity and risk management, according to the draft.

Hilly
Did you get my begging letter

I did, Jeffie, but I've had a busy day and haven't been able to reply yet.

No probs, I know your spam filter is a bit agressive and I didnt want to end up with the mails for penis enlargements and Viagra

I've just had an idea for a job lot of candles.

:o)

Waxing lyrical:)

Cable 1.43 is becoming a bit of a big issue.

? Major resistance?

looks like it this week

This is from the ODL website. Are all brokers doing the same or only ODL. Is there lack of liquidity in the forex market?

Spreads Temporarily Widened

Under the current market conditions, we unfortunately have had to widen the quoted spreads on a number of currency pairs that we offer.

We hope to return to normal service as soon as liquidity returns to the Forex Market

jeff, is that new? think that happened at xmas time as well with them

I've found it a problem again this week, Jeffie. It's gone back to how it was in October.

I think cable needs to clear the 1.41 - 1.43 range and then the commercials will probably come back in to play again.

gofor
It didnt have a date, was on the ODL home page so I would expect it to be current

Most annoyingly, EUR/GBP has widened to 5 pips.

More pips than Gladys Knight

But that's only on odie, jeffie ;)

Well there's a thing.
Odie's narrowed EUR/GBP to 3 now.

Odie make their own market, Chocopops.

Btw, did you subscribe to that Daniel Malarby Robin Hood thing by any chance? I did and also to some eejit called Martin Alexander. I just wanted to see for myself if their ideas had foundation.

I should have followed my instincts and known better because I'm now getting spammed by some outfit in Peng Tong Plaza in the Seychelles which is starting to hack me off.

No I didn't Hiltops - meant to mail you (and I shall) but when I looked at the thingie again, it just didn't look that useful in practice.

Oh and then you can let me know how you got on with walrus woman ;)

It might be the Jappy DNT which is giving the grief.