World Leaders To Meet in Washington

This month world leaders will meet in Washington to discuss the global economic crisis and try to find workable solutions. For reasons of his own president elect Obama will not attend a move that is seen by many as a mistake. The global crisis has affected all aspects of the global economy and Forex traders will be watching the conference with intense interest.

Bush Hosts Summit

US President Bush will host the summit but given his lame duck status expectations are limited. World leaders may be hesitant to make any kind of deals with a departing administration. The 20 nation gathering will include leaders of the ‘big 8’

including, the U.S., Japan, Germany, France, Britain, Russia, Canada and Italy, and will also include the leaders of other major economies such as, China, India, Brazil, Saudi Arabia and Australia.

The global summit is the result of a meeting last month between Bush and French President Sarkozy. The summit will be the first in a series of gatherings to address the worst economic crisis in decades. The crisis has had a profound effect on Forex markets and has kept Forex traders on edge for the last three months.

Summit Could Affect World Markets

Ti is hoped that the nations involved can reach some kind of coordinated plan for dealing with the crisis. Different nations will bring different perspectives and expectations to the meeting and philosophical differences may make reaching an accord difficult. The stakes are high and any perceived failure could have world markets in disarray.

Europeans Seek More Regulation

European leaders are pushing for the creation of an early warning system that would watch for imbalances in world markets. They also seek an expanded role for the International Monetary Fund as the world’

s financial watchdog. The Europeans also want to close loopholes that allowed some financial institutions to avoid regulation. The Bush administration, on the other hand, favors unregulated markets and opposes more regulation.

China Participates For First Time

China, the world’

s largest emerging economy will participate for the first time. British Prime Minister Gordon Brown has suggested that China use its nearly $2 trillion in reserves to help top up an IMF emergency loan program. China responded by saying that its focus will be on its own economy. A Chinese Foreign Ministry spokesman stated the Beijing’s priority will be to “put our own house in order” to ensure economic stability. He also stated “I believe this is the most effective contribution China can make to tackling this financial crisis. It will help to maintain the sound and steady development of the world economy.”

Forex Traders to Watch Summit Closely

As can be seen the different nations participating in the summit bring different priorities and expectations to the summit. Whatever happens at the summit will resonate through financial markets and will certainly keep Forex traders on their toes. In the meantime market watchers and Forex traders are taking a wait and see attitude and will be watching the summit closely.