IMF members pledge to avoid using currencies as trade weapon
International Monetary Fund said on Saturday its members pledged to refrain from competitive currency devaluations and step up dialogue on trade, as escalating trade frictions and higher borrowing costs threatened to knock global growth.
The agreement came as US Treasury Secretary Steve Mnuchin reiterated his concern over the yuan’s weakening against the dollar — a drop that Washington suspects may be aimed at giving Chinese exports a trade advantage and offsetting US tariffs, according to Reuters.
In a communiqué issued by the IMF’S steering committee, the member countries also agreed to debate ways to improve the World Trade Organization so it can better address trade disputes.
“We acknowledge that free, fair, and mutually beneficial goods and services trade and investment are key engines for growth and job creation,” the International Monetary and Financial Committee (IMFC) said in the statement.
“We will refrain from competitive devaluations and will not target our exchange rates for competitive purposes,” it added.
International Monetary Fund and World Bank Group Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 13, 2018. Published by hdnux.com