G20 text strengthens commitment to flexible forex
MOSCOW, July 19 (Reuters) - The Group of 20 strengthened its collective commitment to flexible exchange rates and recognised the support to global growth that has come from monetary stimulus, according to the final wording of a draft communique seen by Reuters on Friday.
"We reiterate our commitments to move more rapidly toward more market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals and avoid persistent exchange-rate misalignments," the text read.
"We will refrain from competitive devaluation and will not target our exchange rates for competitive purposes," the revised wording, to be reviewed by finance ministers and central bankers at dinner, said.
Revised passages also recognised the support of to the global economy of accommodative monetary policies, but added: "We remain mindful of the risks and unintended negative side effects of extended periods of monetary easing. Future changes to monetary policy settings will continue to be carefully calibrated and clearly communicated."
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