“Their interventions have been consistent to a transition to a market-oriented exchange rate and it hasn’t had the character of an intervention that we would say by design is to try and gain an unfair advantage”, the official said.
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In a joint communique issued at the two-day conference of G20 central bankers and finance ministers in China, participants said they would resist all forms of protectionism, and would carefully calibrate and communicate macroeconomic and structural policy actions.
Lou also said that the effectiveness of fiscal and monetary policies is diminishing and major economies should deepen coordination to promote sustainable, balanced growth.
“It won’t mean that they’ll get there in a week or a month”.
“The thing that would be very disruptive to confidence is if this becomes a highly confrontational process”, he said.
‘We must consider the impact of taxes on the welfare of the people.
Ahead of the G20 gathering, a German ministerial source told reporters that the use of government stimulus would not be one of the meeting’s main themes.
In addition, the nations said they were well positioned to proactively address potential economic and financial consequences of Britain’s decision to leave the European Union.
The IMF appears to be more alarmed.
Excess capacity in steel industry has been a hot-button issue for many G20 countries this year amid a slowdown in global demand that has led to a steel glut, layoffs and idled mills.
The IMF recently lowered its forecasts for global growth this year and next by 0.1 percentage point, to 3.1 percent and 3.4 percent respectively.
China is seeking to restructure its economy to make the spending power of its almost 1.4 billion people a key driver for growth, instead of massive government investment and cheap exports.
In a bilateral meeting with Japanese Finance Minister Taro Aso, U.S. Treasury Secretary Jack Lew underscored the need for G20 members to refrain from competitive devaluations.
Meanwhile, Turkey lobbied for the final communiqué to include an endorsement for the current government but that initiative was rejected.
Just ahead of the meeting, the International Monetary Fund called on key G20 nations to boost government spending.
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Managing-Director Christine Lagarde (3rd R) chats with Singapore’s Deputy Prime Minister Tharman Shanmugaratnam (2nd R) and Italy’s Finance Minister Pier Carlo Padoan (R) in a waiting room prior to the start of the G20 High-level Tax Symposium during a meeting of G20 finance ministers in Chengdu, in China’s Sichuan province on Saturday.
