Did the G20 summit widen the rift between the US and Germany? The US is reportedly unhappy with German criticism of its intervention in the yen and also clashed over Russia.

During the G20 meeting, the differences between the US and Europe continued to escalate.

According to a Bloomberg report on September 3, sources familiar with the matter revealed that U.S. officials have expressed their dissatisfaction to the German government through multiple channels. The reasons include Bundesbank President Nagel's public criticism of the U.S.'s previous foreign exchange market operations by selling euros to support the yen, and German Finance Minister Klingbeer's tough stance against the U.S. on the Russia issue.

This friction occurred amid already strained relations between the US and Europe over issues such as trade and the Russia-Ukraine conflict. Earlier this week, the unexpected invitation to Russian Finance Minister Anton Siluanov to attend the US-hosted G20 finance ministers' meeting had already sparked discontent in Europe; Bloomberg's latest disclosure reveals that the disagreements have extended to exchange rate policy and escalated into a direct confrontation between the US and Germany during the G20 summit.

Germany claims the US sold off the euro to support the yen without prior coordination with Europe.

According to Bloomberg, citing sources familiar with the matter, the U.S. Treasury Department has lodged protests with Germany through multiple channels regarding Nagel's remarks.

Nagel previously stated in an interview in North Carolina that the United States should coordinate with its European partners before selling euros and supporting the yen.

This statement directly relates to the recent US intervention in the yen.

The US previously supported the yen by selling euros, raising concerns about whether the US is increasingly utilizing foreign exchange market tools. Nagel believes that such significant foreign exchange operations should not proceed without coordination with European partners.

The German Finance Ministry and the German central bank declined to comment, and the U.S. Treasury Department did not immediately respond to Bloomberg's request for comment.

German Finance Minister refuses to pose for a photo with Russian Finance Minister, supported by European representatives.

In addition to the currency market issue, Bloomberg reported that U.S. Treasury Secretary Bessenter was also dissatisfied with Klingbeer's hardline stance on Russia.

Russian Finance Minister Siluanov's unexpected appearance at this week's G20 meeting has become a point of controversy. Multiple media outlets had previously reported that the United States, as the current G20 chair, invited Siluanov to the meeting without adequately coordinating with other G20 members beforehand.

Klinkaer had previously stated publicly that he was "annoyed" by the decision, believing that inviting Siluanov to the meeting was tantamount to trying to "normalize" relations with Russia amid the ongoing conflict between Russia and Ukraine.

This disagreement was ultimately reflected in the G20's traditional "family photo".

According to Bloomberg, Klinkaer refused to join Siluanov in the group photo, a decision supported by other European attendees. Ultimately, Siluanov did not appear in the photo at the last minute.

Bessenter accused the German finance minister of turning his back on Russia, and there were discrepancies in their accounts at the scene.

The dispute between the US and Germany over Russia extended to the meeting venue.

After the German delegation left the G20 meeting, Bessenter publicly commented on Klingbeyer's behavior at a meeting, saying that the German finance minister "stood up and turned away" while the Russian finance minister was speaking.

However, Bloomberg, citing sources familiar with the matter, said the description was controversial.

According to a source familiar with the matter, Klinkaer actually clashed directly with Siluanov during the meeting and urged Russia to end the war in Ukraine.

This means that the US and Germany not only disagree on whether to invite Russia to the G20, but also on how the German finance minister responded to Russia's behavior at the meeting.

Bessant previously held bilateral talks with Siluanov. The signal from the US is that Russia is unlikely to receive economic relief or other agreements before the end of the Russia-Ukraine war, but the US still hopes to advance the Trump administration's peace agenda through direct engagement.

This is in stark contrast to the position of European countries such as Germany, which hope to continue isolating Russia through economic and diplomatic pressure.

Germany is also dissatisfied with the US restrictions on media coverage.

The conflict between the US and Germany is not limited to currency and Russia.

Bloomberg reported that Klingbeer publicly criticized the U.S. Treasury Department's restrictions on journalists attending the G20 summit before and after his trip to the U.S. He argued that prohibiting "individual journalists" or even "entire news organizations" from covering the G20 was "unacceptable," and that journalists should be able to report on the summit "openly and freely."

Prior to the G20 summit, the German Finance Ministry attempted to persuade the United States to rescind its ban on journalists accompanying the German delegation through top-level diplomatic channels. Ultimately, only one of the two journalists who applied was granted permission to cover the G20.

According to Bloomberg, the U.S. Treasury Department previously denied reporting privileges to several media outlets, including Bloomberg News and reporters from The Wall Street Journal.

From Russia's participation to currency disputes, the differences between the US and Europe have extended to economic policies.

Earlier this week, Germany and other European countries publicly expressed their dissatisfaction with the invitation extended to the Russian finance minister at the G20 summit, a controversy that has garnered attention from numerous media outlets. Deutsche Welle reported that the US invitation to the Russian finance minister and restrictions on some media coverage have angered Germany and other European countries; the Wall Street Journal pointed out that disputes, including those concerning Russia, have overshadowed this year's G20 meeting with a series of political disagreements.

However, the key point of Bloomberg's latest disclosure is that the conflict between the US and Germany has further extended to exchange rate policy.

On the one hand, the head of the German central bank publicly questioned the US's foreign exchange market operations supporting the yen, arguing that Washington should have coordinated with its European partners beforehand; on the other hand, the US expressed dissatisfaction with Germany's hardline stance on Russia.

Since the Trump administration returned to the White House, the differences between the US and Europe have gradually expanded from traditional trade and security issues to exchange rate policy, policy toward Russia, and the way global economic governance is conducted.

The G20 meeting was originally intended to coordinate global growth, debt and other economic issues, but disputes over issues such as yen intervention, Russia's participation and media coverage are becoming the more prominent political and economic frictions during the meeting.

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