The dollar sank to a record low against the euro heading into the Berlin G20 summit, but the three-day meeting of finance ministers and central bankers from major economies ended 22 November 2004 without any coordinated move to steady the US currency.
German Chancellor Gerhard Schroeder had urged central banks to act, but his call drew no response. Finance Minister Hans Eichel confirmed that market intervention was never raised during the talks. The final communiqué mentioned exchange rates only in calling for greater flexibility among Asian emerging-market currencies.
US officials had entered the summit with dollar policy firmly off limits. Treasury Secretary John Snow said the G20 was not a forum for exchange rate discussion, and Federal Reserve Chairman Alan Greenspan argued that large-scale currency interventions produce no lasting effect on exchange rates. Washington said it felt no pressure from other delegations on the issue.
China resisted calls to loosen the yuan's dollar peg, with People's Bank governor Zhou Xiaochuan saying it was too early to discuss any change.
Analysts read the outcome as clearing the way for further dollar losses, with economist Carl Weinberg of High Frequency Economics saying the result gave markets "a licence to treat the dollar as it wants."
Historical summary. TurkishPress restated this AFP wire report, first published in November 2004, in its own words.