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BRUSSELS, Oct. 29 (Xinhua) -- The European Union (EU) would call on its global partners to refrain from engaging in a currency war at the G20 summit in Seoul next month, leaders of the 27-nation bloc said Friday. The EU stresses the need "to avoid engaging in exchange rate moves aimed at gaining short-term competitive advantages," EU leaders said after a two-day summit here. The currency conflict began as the U.S. announced it would expand its stimulus package by conducting quantitative easing, which would further devalue its currency. A weaker dollar has put pressure on other currencies, including the euro, and may hurt exports and economic recovery in other parts of the world. With strong inflows of hot money, the emerging economies are faced with a difficult job to keep their currencies from rising too fast. In a letter to EU leaders, European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy suggested there should be remedial action on exchange rates and capital flows to prevent a widening of global imbalances. "As global imbalances are fuelled by exchange rate misalignments, in Seoul we need to find a common ground that will allow us to make progress on exchange rates and capital flows issues and take remedial action where needed," they said in the letter. But the EU leaders rebuffed a U.S. call to set numerical targets on current account surpluses or deficits. "In this respect, we have presented a proposal to the G20 on how to address these issues in a cooperative way, based on the methodology we have developed to cope with our internal imbalances, without having to resort to controversial quantitative targets, as suggested by the U.S.," the letter said. Washington had hoped to force countries like China to keep their large trade surpluses below 4 percent of gross domestic product, possibly through an appreciation of their currencies. Addressing reporters after the EU summit, Van Rompuy said the EU wanted to see moves of exchange rates to be more market-based. Special Report: Global Financial Crisis The e-commerce company in China offers quality products such as Printed Plastic Cards Manufacturer , PVC Magnetic Stripe Cards Manufacturer, and more. For more , please visit RFID Smart Card today!
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