The Group of Seven leading industrial nations, which includes Canada, the United States, Japan and Germany, are warning that volatile movements in exchange rates can adversely hit the global economy.

In a brief statement published Tuesday, the G-7 finance ministers and central bankers say "excessive volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability."
They also say they will "continue to consult closely on exchange markets and co-operate as appropriate" and insist that their policies are oriented towards meeting domestic objectives and "not towards setting specific exchange rates."

The G7 statement comes ahead of a meeting in Moscow at the weekend of finance ministers from the 20 industrial and developing countries, where the state of the world economy will be discussed.

Bank of Canada governor Mark Carney, who is about to become governor of the Bank of England in July, is scheduled to speak in Ottawa about monetary policy.