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14 Feb 2007

G7 Meeting Calls for Closer Monitoring of Hedge Funds

The two-day G7 meeting in Essen concluded with a call for the monitoring of hedge funds worldwide and urged talks with the industry. They said energy efficiency and diversification, particularly renewable forms, remains an economic priority. They also reiterated concerns about volatility in foreign exchange markets.

The G7 is comprised of official representatives from Britain, Canada, France, Germany, Italy, Japan, and the United States. The group released their conclusion that the world's major developed economies show solid growth, but foreign exchange fluctuations, the rising power of hedge funds and dwindling energy supplies are a concern.

"We are confident that the implications of these developments will be recognized by market participants and will be incorporated into their assessment of risks," the statement said, which was released after the G-7 participants ended their two-day meeting.

"Given the strong growth of the hedge fund industry and the instruments they trade, we need to be vigilant," the statement added, also saying that the group will talk with the private sector and hedge fund operators and would ask the Financial Stability Forum to update its 2000 report on hedge funds.

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