APEC finance ministers to refrain from competitive currency devaluation

CEBU (Reuters) – Finance ministers from the Asia Pacific Economic Cooperation (APEC) group said on Friday they were committed to addressing weaknesses in their economies but stressed they would not seek to gain a competitive edge by weakening their currencies.

"We will refrain from competitive devaluation and resist all forms of protectionism," ministers from the 21-member group said in a statement at the end of a meeting on the Philippine island of Cebu.

"We maintain our commitment to strengthen economic growth and promote financial stability in the APEC region," they said, even as they conceded risks to growth remained significant.

The Cebu meeting took place amid growing concern about the slowdown in China, the world's second-largest economy, and recent swings in global financial markets following the devaluation of the Yuan currency last month.

China has insisted that the devaluation was not part of a currency war, but was aimed at making its exchange rate reflect market conditions more closely.

Speaking at a closing ceremony, China's vice finance minister said volatility in Chinese stock and currency markets was temporary.

"The exchange rate movements in the past month is totally because of technical reasons and factors, and will not affect the stability of financial markets in the future," the vice minister, Shi Yaobin, told a press briefing.

APEC members include the United States, China, Japan, South Korea, Indonesia, and Canada, and together account for 57 percent of global production and 46.5 percent of world trade.

Generally, delegates to the twoday meeting have been circumspect in their comments, often speaking in bland terms about the need for greater financial integration.