More currency and trade - G20

From weekend G20 meeting, now it's head-on between developed world (largely US and Euro zone) and emerging markets.

Tim Geithner:
“The IMF must strengthen its surveillance of exchange-rate policies and reserve accumulation practices,” he told the IMF’s ministerial steering committee. “[E]xcess reserve accumulation on a global scale is leading to serious distortions in the international monetary and financial system, and is inhibiting the international adjustment process.”

Zhou Xiaochuan:
"The continuation of extremely low interest rates and unconventional monetary policies by major reserve currency issuers have created stark challenges for emerging market countries in the conduct of monetary policy,” he said.

“The Fund’s current surveillance framework, which focuses on exchange rate policies, effectively leaves developed countries outside the Fund’s oversight.”

Currency is politics.  Since Bretton Wood, the US government perfected it... unfortunately when you are using it for too many times, others will eventually be fed up.

My bet is neither side will back off on its position.