Finance leaders from the Group of Seven (G7) countries on Friday
expressed their concerns over the soaring oil prices and called on
more investment in the production of oil and oil products.
In a joint statement after a close-door meeting of the G7
finance ministers and central bankers, the seven industrialized
countries said that the strong global economic expansion continues
into its fourth year and the outlook remains favorable. But "risks
remain from oil market developments, global imbalances and growing
protectionism."
"We are strengthening the dialogue between oil producers and
consumers to further improve market transparency through the
release of more complete and timely data on production, consumption
and inventories, and for clear reporting of oil reserves," the
statement said.
G7 countries "urge investment in exploration, production, energy
infrastructure and refinery capacity" and "remain committed to
greater energy efficiency, conservation and diversification, which
will improve the balance between supply and demand."
The finance officials also called for more flexible exchange
rates to help redress global economic imbalances.
"We reaffirm that exchange rates should reflect economic
fundamentals" and "excess volatility and disorderly movement in
exchange rates are undesirable for economic growth," the statement
said.
"Greater exchange rate flexibility is desirable in emerging
economies with large current account surpluses, especially China,
for necessary adjustments to occur," it said.
The statement came ahead of the joint spring meeting of the
International Monetary Fund and the World Bank. The G7 consists of
the United States, Japan, Germany, France, Britain, Italy and
Canada.
(Xinhua News Agency April 22, 2006)
