IMF mem­bers pledge to avoid us­ing cur­ren­cies as trade weapon

Iran Daily - - Tse & Global Economy -

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

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