United States Treasury official Lael Brainard addressed the topic of managed exchange rates during a conference in Washington. Japan did not get a mention, but was part of the G7 members that signed the statement last month before the G20 meeting in Moscow
“The managed exchange rates regimes of some of the most systemically significant emerging market economies and the market-based monetary and exchange rate frameworks of the world’s reserve currencies create inevitable tensions that fuel protectionist pressures,” Brainard told a conference in Washington.
She called on all countries in the Group of 20 advanced and emerging economies to stick to their commitment to not target exchange rates to make their economies more competitive. The G20 countries had signed on to the statement during meetings in Moscow last month.
The United States, along with the other countries in the Group of Seven nations, also released a separate statement at the time, pledging to avoid targeting a specific exchange rate and focus only on domestic needs.
When asked about China, Lael Brainard continued what is now a long standing U.S. policy to ask China for a further appreciation of the Yuan.
In response to a question, Brainard said China, which manages its exchange rate, has made some progress in strengthening its currency against the dollar.
“But more progress is needed,” she said. We will continue to push very hard on those commitments.”
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