G20 finance ministers against competitive currency devaluation

Ankara: In a virtual disapproval of China's recent devaluation of yuan that triggered shocks in the global economy, world's 20 big economies, including India, called for moving towards market-determined currency rates and resist from competitive devaluation. The G20 group of economies also expect that monetary policy tightening is possible in some advanced economies, an euphemism for a likely interest rate, especially in the US.

"We reiterate our commitment to move toward more market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments.

"We will refrain from competitive devaluations, and resist all forms of protectionism," said the communique issued at the end of the two-day meeting of the G20 Finance Ministers and Central Bank Governors. The statement did not name China but it comes against the backdrop of unsettling currency devaluation done by China recently that sent markets globally into a tailspin.