G20 to coordinate exit strategy rhetoric-sources

(This story contains no dateline to protect the sources of the information)

Sept 18 (Reuters) - Leaders of the Group of 20 nations are expected to agree at their summit in Pittsburgh next week to coordinate their public statements on exit strategies, G20 sources preparing for the meeting said on Friday.

'Leaders will agree to coordinate on any talk of exit strategies going forward. They will agree to use the words 'exit strategy' more and more,' one source told Reuters on condition of anonymity.

The term 'exit strategy' refers to the eventual unwinding of fiscal and monetary stimulus steps worth hundreds of billions fo dollars that were introduced during the global economic crisis.

Financial markets are sensitive to any talk of exit strategies by G20 nations. If stimulus steps are removed too fast, the global economic recovery could falter, but if they are left in place to long the global economy could face a surge of inflation.

The source added that the timing of exit strategies and their nature would not be discussed in Pittsburgh but would 'be left, most likely for detailed discussion at the next G20 summit in around six month's time'.

The sources said leaders would not discuss currencies, notably the role of the U.S. dollar as the global reserve currency, in Pittsburgh.

'It is something for a later date and certainly not on U.S. soil,' a second G20 source said.

'G20 leaders will not discuss interest rates or any other monetary policy at the summit. It's a political discussion without any central bankers present.'

Future governance of the International Monetary Fund will be discussed in Pittsburgh, but detailed talks will not be held on issues such as voting rights and quotas, the sources said.

(Editing by Ron Askew)

(ron.askew@thomsonreuters.com; +44 207 542 7724)

Keywords: G20/SUMMIT

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