G20: U.S. Urges China To Avoid Competitive Devaluation Of Currency

(RTTNews) - The United States pressed China to let its exchange rate be determined by market forces and refrain from competitive devaluation when G20 finance ministers and central bank chiefs from the world's top 20 economies gathered in Turkey.

"China should allow its exchange rate to reflect underlying fundamentals, avoid persistent exchange rate misalignments, and refrain from competitive devaluation," the US Treasury Secretary Jacob Lew said.

Lew reiterated the significance of China honouring its commitments to move towards a more market-determined exchange rate system in a clear path and to increase the transparency of its exchange rate policies.

The Chinese leaders signaled that they are attempting to shift to a different growth model with as little market disruption as possible, and are planning measures to regulate swings in the stock market. They had committed to continue structural reforms and support economic growth to restore confidence in the economy.

Regarding recent market turbulence, the PBOC governor Zhou Xiaochuan explained that a stock-market bubble in his country had "burst," the Japanese Finance Minister Taro Aso told.

The G-20 leaders are discussing about the deepening slowdown in China and the Federal Reserve's monetary policy and its risks to global economic outlook in Ankara. The 2-day meeting ends later in the day.