By MALILA Harris
KOREA NEWS - The global currency war has put bar on global economic recovery. To find a solution to the problem, the Group of 20 nations are planning to meet in Seoul next week.
The meeting is expected to a find long lasting solution for international concern, putting behind national interests and tame the crisis. The cooperation among countries are needed to find a solution with a common consensus.
South Korean President Lee Myung Bak said that cooperation among all countries was of utmost importance. and if all the countries looked for their own selfish need that would bring trade protectionism and in long run would cost world economy a big problem. He was hopeful to attain a good results from the future summit.
To be in safe side and protect from the global crisis, major economies have allowed their currencies to depreciate aftermath the global crisis and made their exports cheaper and imports expensive.
In the process of devaluation dollar weakens and currencies like euro and the Chinese Yuan have become strong, allowing China to bring a huge trade surplus.
In a recent announcement US Federal Reserve that buys up to $600 billion of government debt to boost economic growth and increase employment rates. It is reported that US has facing a 10% decline in its economic growth that put huge pressure on US President.
European Commission President Barroso and European Council President Van Rompuy asked for a political commitment to cooperate among nations and find a long term solution. They find the tension of global currency has caused much headache to global economy.
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