India to take up currency devaluation issue at G20

New Delhi: Ahead of the meeting of G20 finance ministers and central bank governors in Turkey, India said competitive devaluation of currency is a major threat to stability in the global economy. "The recent devaluation of major currencies followed by currency depreciations in a large number of Asian emerging  markets raises the risk of competitive devaluations. "Competitive currency devaluations, at a time when global demand is sluggish, is a major threat to stability in the  global economy," an official release said as Finance Minister Arun Jaitley left for Ankara.    

He would participate in a two-day conference of G20 finance ministers and central bank governors, who will take stock of the global economic situation and review the member nations' growth strategies. G20 ministers and governors in Ankara on September 4-5 will exchange views on the recent global economic developments, challenges and collective measures to address them as well.

Reserve Bank of India Governor Raghuram Rajan will also participate in the meet."The attempt in Ankara would be to analyse the situation and consider collaborative measures like developing the global safety nets to protect countries from negative spill-overs arising from domestic actions," the release said. The Finance Minister will also hold meetings with his counterparts from G20 countries on the sidelines of the meet. Other members of the grouping include Argentina, Brazil, China, France, Germany, Italy, Japan, Russia, South Africa, Turkey, the UK, the US and the European Union.     

Jaitley will also participate in the joint meeting of G-20 Finance and Labour Ministers as well as in the First Meeting of the Governing Council of BRICS Contingent Reserve Arrangement (CRA). "The main purpose of these meetings is to review ongoing global economic developments, growth prospects, investment and infrastructure, international financial architecture and international tax issues among others," the release said.

The recent devaluation of Chinese currency Yuan has triggered a global financial turmoil hurting stock and currency markets worldwide.