G20 pledges to avoid competitive devaluation
Updated: 2013-04-20 03:34
WASHINGTON - Finance ministers and central bank governors from the Group of 20 (G20) major economies in the world on Friday reaffirmed their pledge to avoid the competitive devaluation of respective currencies.
"We will refrain from competitive devaluation and will not target our exchange rates for competitive purposes, and we will resist all forms of protectionism and keep our markets open," said a communique issued after the G20 officials wrapped up two days of discussions on the sidelines of the International Monetary Fund ( IMF) and the World Bank Spring Meetings.
The pledge is similar to the one they made at a previous gathering in February.
The G20 policymakers also reiterated that "excess volatility of financial flows and disorderly movements in exchange rates have adverse implications for economic and financial stability," adding that monetary policy should be directed toward domestic objectives.
"We will be mindful of unintended negative side effects stemming from extended periods of monetary easing," the communique added.