China’s surprise decision to revalue the yuan as it tried to contain the stock market turmoil caused the currency to drop the most in 21 years last month, triggering exchange-rate declines elsewhere in the emerging world on concern that a weaker yuan will hurt countries exporting to China.
Canadian finance minister Joe Oliver said achieving the targets required commitment. But they expressed confidence that a recovery would gain momentum.
“[He] underscored the importance of China carefully communicating its policy intentions and actions to financial markets”, the readout added.
This month, however, financial markets have begun to stabilise as more balanced assessments emerge of what is happening in China and to the world economy.
Jaitley told PTI that leaders from across the world, who attended the meeting, took stock of the global economy here besides addressing the set agenda of the scheduled sessions. “In other words, not give it a try and have to come back”.
The United States had pushed for 20 percent, while some in Europe had been arguing for 16 percent on the grounds that their banks were still recapitalizing after the financial crisis. The revision stemmed from slower services industry growth of 7.8 per cent a year ago, down from an initially reported 8.1 per cent.
The critical test, US officials say, is whether China allows the yuan to appreciate should market forces pressure it upward.
The G-20 is already behind on its plans to increase boost global output by two percent. The other positive indication that has now come from the USA is that their second quarter growth figures are good and unemployment is going down, ” he said.
Lagarde was even more explicit, making clear governments had for too long relied on the supply of cheap cash from central banks that have been running ultra-loose monetary policy.
The Chinese central bank on August 11 devalued the yuan by almost two percent, surprising markets and raising concerns about the effects of China’s economic slowdown.
“We can not live all the time on easy money“, Luxembourg Finance Minister Pierre Gramegna, whose country holds the rotating presidency of the European Union, told Reuters.
They were behind schedule, the communiqué said. “From now on, the emphasis will be on greater exchange of information, better communication”, he said.
The statement is expected to refer to the need for the G-20 countries to implement structural reforms expeditiously, the source said.
The G-20 members promised to “calibrate” their economic policies and to “clearly” communicate actions they will be taking in a bid to increase transparency and reduce uncertainty.
That message wasn’t only for China, however.
This, when taken with falling commodity prices and higher interest rates in the USA, suggests that the period of austerity and fiscal adjustment that the Caribbean has been undergoing may be far from over.
There were diverging views on when the Fed should move.
“We do not believe the present policy is sustainable given the associated costs in terms of FX reserves depletion and liquidity imbalances”, Barclays said.
Discussion about Fed policies was “extremely broad and in-depth”, worldwide Monetary Fund (IMF) managing director Christine Lagarde revealed.