G20 steers clear of 'currency war' talks; budget woes persist

The Group of 20 nations meeting in Moscow today agreed to defuse all talks of ''currency wars'' and instead target debt reductions in order to save the global economy from its current fragile state.

The summit of financial and monetary policy makers of 20 major economies also decided to overlook expansionist monetary policies being followed by Japan and the US.

The G20, which groups developed and emerging markets, accounts for 90 per cent of the global economy.

A final draft of a joint communique stated that nations would direct monetary policy at price stability and refrain from competitive currency devaluations.

"The language has been strengthened since our discussions last night," Canadian finance minister Jim Flaherty said. "It's stronger than it was, but it was quite clear last night that everyone around the table wants to avoid any sort of currency disputes."

Although the communique speaks of stability, G20 finance ministers and central bank governors have not agreed to set new targets for cutting budget deficits and debts, Russia's finance minister said.