G20 to Warn Against FX Volatility and Currency Devaluations

The world’s financial leaders will renounce competitive devaluations and warn against exchange rate volatility, but they have not yet found a common stance on trade and protectionism, a draft statement of their meeting in Germany showed on Friday.

The finance ministers and central bank governors of the world’s 20 largest economies may struggle to present a united front on protectionism after the new administration of U.S. President Donald Trump began considering imposing a border tax that would make imports more expensive.

A G20 draft communique, which may still change and is to be published only on Saturday, also said that monetary policy will keep supporting growth and price stability but cannot alone lead to balanced economic growth.

“We reiterate that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability,” the draft communique, seen by Reuters, said.

via Reuters

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