After yesterday's preparatory meeting by their deputies, G20 finance ministers and central bank governors kick off a two-meeting today in Moscow. Delegates plan to discuss traditional issues such as the global economic outlook, implementation of the G20 framework agreement for strong, sustainable and balanced growth, as well as further implementation of the IFA's (International Fiscal Association) reform and financial regulation reforms.

According to the agenda, members are also planning to continue discussing Russia's priority issues: the financing for investment and government borrowing and public debt management.

The greatest focus for the market, however, will be the issue of the so-called "currency wars". After the G7 issued a statement promising to allow markets to determine exchange rates, there appears to have been some confusion over the message being misinterpreted as allowing Japan to depreciate the yen in order to support its economy.

With this in mind, host-country Russia is reported to be focusing on the issuance of a G20 statement that backs the essence of the G7 communiqué on currencies but that would also avoid misinterpretation.

In any case, the official agenda notes that the "main events" are planned to take place tomorrow February 16th. As is customary, finance ministers and central bank governors are expected to sign off on the final joint communiqué at the end of the meeting.

JM

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