VOICED: Currency war threat looms over G20 ministers' meeting

Finance ministers and bank chiefs from major economies aim to guide global growth but face challenges from potential currency wars. The US and China are at odds over the yuan's value, with the US pushing for faster appreciation and China resisting foreign interference. The US may use quantitative easing to lower the dollar, prompting criticism from China. As countries try to keep currencies low, investors flock to emerging markets, causing volatility. Japan has intervened to control the yen's rise, raising concerns about protectionism. The G20 must address these imbalances to ensure global cooperation and growth.

What is the main reason for the US's impatience with China's currency policy?

• China's rapid economic growth

• The slow appreciation of the yuan

• China's trade surplus with Europe

• The US's trade deficit with Japan

What action has the US signaled it might take to influence the dollar's value?

• Begin a new round of quantitative easing

• Implement trade tariffs

• Reduce government spending

• Increase interest rates

What is a potential risk of foreign cash inflows into emerging markets?

• Decreased foreign investment

• Increased inflation

• Stable exchange rates

• Rapid currency appreciation and depreciation

What action did Japan take to manage the yen's rise against the dollar?

• Implemented trade restrictions

• Conducted a smoothing operation

• Increased export tariffs

• Decreased interest rates

What is a key challenge for the G20 in terms of global economic growth?

• Balancing trade deficits

• Ensuring currency imbalances do not threaten cooperation

• Increasing foreign investments

• Reducing global inflation