US PRESIDENT Barack Obama responded to widespread criticism that the United States is deliberately weakening the dollar as he tried to swing the G20 spotlight back onto global imbalances at a gathering of world leaders in Seoul.
The US easy-money policy has been under fire since the Federal Reserve announced last week it would pump an additional $600bn (£372.4bn) into the economy. In an attempt to ease tensions, Treasury secretary Timothy Geithner said he was optimistic the G20 could reach a deal to limit trade imbalances during a two-day summit due to conclude today.
Obama, in an attempt to take his own country’s policies out of the glare, said a strong US economy was vital to the global recovery and urged his G20 counterparts to put aside differences and help promote economic growth.
“When all nations do their part - emerging no less than advanced, surplus no less than deficit - we all benefit from higher growth,” Obama said in a letter sent to G20 leaders.
The bridge-building came after a day of heated arguments as negotiators struggled to hammer out a statement that all G20 leaders could sign.