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Finance ministers and central bank heads from the world’s seven major developed powers are to meet this Saturday (October the 3rd 2009) at Istanbul, Turkey.
This follows the group of 20 countries, G20 summit that was held less than two weeks ago in Pittsburgh, Pennsylvania, US. The seven countries were coming together on the sidelines of the International Monetary Fund and the World Bank’s annual meetings in Istanbul.
The officials of the seven countries believe this meeting will be an opportunity to follow up on the promises of closer cooperation made by the G20 meetings.
However, the G20 takes precedence over the G7 meeting, the G7 countries naturally being a part of the bigger G20. The G20 includes developing powers like China, India and Brazil that are not in the G7.
US officials have said the G7 will continue to play a future role in coordinating policies among the world’s wealthiest nations, who have been regularly meeting as a bloc since the 1970s.
Only a few days back the IMF declared that the world is out of recession but will face a sluggish recovery and more job losses in the coming year.
The G7 will be considering measures to firm up the recovery, as well as ongoing efforts to achieve far-reaching regulatory reforms that would prevent another collapse of their financial sectors in future.
There is a strong conviction that the declining dollar could curb the global recovery by raising export costs for other countries. The US currency has dropped nearly 13 percent against seven major currencies since the start of the year. But finance officials from the US and Europe have sought to assure markets this week that the “strong dollar” remains in everyone’s interest.
