G20 vows to boost fragile growth

Ankara

G20 finance ministers and central bank chiefs yesterday pledged to act decisively to shore up stuttering global growth and to refrain from unsettling currency moves after China’s controversial devaluation last month.

The economic supremos from the world’s top 20 economies said in a communique after their two-day meeting in the Turkish capital Ankara that global growth was falling short of expectations, despite strengthening activity in some economies.

Their statement did not refer specifically to China but contained a clear pledge not to resort to competitive currency devaluations to give an unfair advantage to domestic exports.

The group vowed to “carefully calibrate and clearly communicate our actions... to minimise negative spillovers, mitigate uncertainty and promote transparency” as key global economies search for robust growth.

In a signal to China to tread carefully in its foreign exchange policies, the G20 vowed to “refrain from competitive devaluations and resist all forms of protectionism.” 

“We reiterate our commitment to move toward more market-determined exchange rate systems and exchange rate flexibility... and avoid persistent exchange rate misalignments,” it said.

US Treasury Secretary Jacob Lew pressed his Chinese counterpart on the sidelines of the meeting to improve communication of economic policy and refrain from competitive devaluations.