Confidence is key to generate investment and necessary growth to build a better global economy, stated Turkey's Deputy Prime Minister Ali Babacan yesterday during his speech at the G20 finance ministers and central bank governors meeting in Istanbul. "In order to have higher rates of growth, confidence is going to be the key element for all G20 countries and beyond throughout this year," Ali Babacan said in the opening speech of the meeting.Turkey is hosting the first major two-day G20 conference of 2015, as it takes on the role of president of the multi-national body. The Turkish G20 meeting comes amid concerns cast by an impasse between Greece and Europe, uncertain oil prices which have fallen rapidly in recent months and the threat to emerging economies due to currencies falling against a strengthening dollar.G20 countries are aiming to tackle slow growth with a pledge for a two points higher global GDP by 2018, despite stagnation in Europe and Japan. Babacan also stated his hope for targeted growth, referring to the more-than-1,000 commitments and structural reforms made by G20 countries. His comments come after he said yesterday that Turkey wants to set clear goals for G20 countries' investment commitments, even though it was "not clear" whether all members of the international body wanted to set such targets.A report by the OECD on Monday said that developed countries had seemingly slowed in implementing reforms, while developing countries had increased their pace of change. "If you really do what you have committed [yourself to do]... we believe that the global economy will pick up even faster," said Babacan yesterday.In a meeting on the sidelines of the summit, the two also agreed that boosting near-term domestic demand should be a top priority for the G20 under Turkey's presidency in 2015, and that all parties should adopt a "pragmatic way forward" over Greece.The deputy prime minister held private meetings with the finance ministers and chairmen of the Central Banks of G20 countries. Within the scope of the G20 Agenda Conference under Turkey's presidency, Babacan and Turkey's Central Bank Governor Erdem Başçı held meetings with the Russian Finance Minister Anton Siluanov, Fed Chair Janet Yellen, Japan's Central Bank Governor Haruhiko Kuroda and German Finance Minister Wolfgang Schauble.U.S. warns G20 against using exchange rates to boost exportsThe United States urged a meeting of the G20 leading economies not to resort to currency devaluations to boost exports. The meeting of finance ministers and central bankers in Istanbul comes at a difficult time, with major economies running at different speeds, monetary policies diverging and Greece casting a new shadow over Europe.U.S. Treasury Secretary Jack Lew underlined the need to stick to existing commitments on exchange rate policy, a Treasury official said, pledges which include refraining from competitive exchange rate devaluations. "Secretary Lew strongly emphasised ... that we are highly focused on ensuring that U.S. workers and firms play on a level playing field and no country should use their exchange rate to increase exports," the official said.The U.S. Federal Reserve looks set to raise interest rates this year, a stark contrast to huge money printing programs by the European Central Bank and Bank of Japan and impromptu rate cuts from India to Australia, Canada to Denmark.A by-product of that is the dollar being driven higher while other major currencies tumble. There has generally been an acceptance in Washington that a weaker euro and yen is an inevitable consequence of actions to revive moribund economies, something the United States has consistently called for.According to a draft communique for the meeting, obtained by Reuters overnight and intended for adoption later on Tuesday, the G20 welcomed the ECB's quantitative easing - despite German concern - and said it would further support recovery in the euro area.In a nod to expectations that the Fed will raise interest rates, the draft said some advanced economies with stronger growth prospects were moving closer to "policy normalisation". But it cautioned: "In an environment of divergent monetary policy settings and rising financial market volatility, policy settings should be carefully calibrated and clearly communicated to minimize negative spillovers."Oil price fall allows states to 'reassess fiscal policies'The recent sharp decline in oil prices will provide "some boost" to global growth and should allow states to "reassess" fiscal policies to sustain economic activity, leading G20 economies said in a draft communique yesterday. "The fall in oil prices will provide countries with an opportunity to reassess their fiscal policies," finance ministers and central bank chiefs from the group said in their draft statement. It stated that fiscal policy "has an essential role" in building confidence and sustaining domestic demand.At their meeting in Istanbul, the G20 have sought ways to boost faltering global growth against the background of the debt crisis in eurozone member Greece.While the decline in oil prices will lead to a boost in global growth, the implications will be different for oil exporting and oil importing countries. "In some countries, potential growth has declined, demand continues to be weak, the outlook for jobs is still bleak, and income inequality is rising," the communique said. It said that growth in the global economy remains "uneven" and the recovery "slow," especially in the eurozone and Japan, as well as some emerging market economies. "To this end, we will continue to assess major risks in the global economy and remain vigilant," the finance chiefs said.They also warned of the risk of stagnation in some leading economies."Prolonged low inflation alongside sluggish growth and protracted demand weaknesses in some advanced economies may increase the risk of persistent stagnation." They also committed to "deepen our cooperation" in the fight against terrorism financing by exchanging information and "freezing terrorist assets."The communique urged "all countries to speed-up their compliance with the relevant international standards" in this respect.