Amid significant reported tensions between the US and ‘rest of world’ over trade and protectionism and disagreements over the downsides of cryptocurrencies, it appears Trump and Kuroda won this round.
The Group of 20 economies highlighted the importance of international trade, while alerting that fast monetary tightening as well as geopolitical tensions threaten to undermine the broadest global growth since 2010.
“Strong fundamentals, sound policies, and a resilient international monetary system are essential to the stability of exchange rates, contributing to strong and sustainable growth and investment,” finance ministers and central bankers from the world’s top developed and emerging nations said in a joint communique at the close of a two-day gathering in Buenos Aires.
“We reaffirm the conclusions of our business leaders at the Hamburg Summit and recognize the need for more dialogue and action, and we are working to strengthen the contribution to trade of our economies.”
However, as Bloomberg reports, the tension was evident in the halls of the G-20 meetings in Buenos Aires, as participants expressed frustration with U.S. threats that they said could upend the very rule-based order on trade that it helped establish.
Delegates struggled to finalize a communique that would please all nations, as the U.S. butted heads with allies and pushed to omit the term “multilateral” from the statement, according people who participated in the meetings.
And, confirming the rumors that there would be no G-20 crackdown on cryptos, seemingly tipping towards Japan’s “wealth effect” perspective on the virtual currencies, for the first time, the G-20 statement made reference to the rise of crypto assets and the need to regulate the risks they pose.
“At some point they could have financial stability implications,” according to the statement.
Aditionally, the G-20 statement referred to cryptos as ‘assets’ not ‘currencies’, warning that they have tax evasion, money-laundering, and other issues associated with them, but falling short of suggesting regulatory crackdowns.
Bitcoin legged higher on the news…
And the G-20 has kicked the can until July for its next discussion of Cryptocurrencies.