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G7 statement: Finance ministers agreed to avoid competitive devaluation
May 24, 2016 / 12:11 PM / 2 years ago

G7 statement: Finance ministers agreed to avoid competitive devaluation

TOKYO (Reuters) - Finance leaders of the Group of Seven (G7) advanced economies reaffirmed existing exchange-rate pacts, including not targeting exchange rates and avoiding competitive currency devaluation, an official summary released on Tuesday showed.

An officer of Japan's railway police overlooks Tokyo Station from a stand, which features a display that announces that special security measures are now in place ahead of the upcoming Ise-Shima G7 summit, in Tokyo, Japan, May 16, 2016. REUTERS/Thomas Peter

The G7 countries also reaffirmed their agreement that excess volatility and disorderly currency moves could hurt economic activity, the summary, released by Japan’s finance ministry, showed.

At the meeting, which Japan hosted on Friday and Saturday, central bankers agreed that monetary policy would continue to support the economic recovery consistent with their mandates, including unconventional policies, according to the statement.

The United States issued a fresh warning to Japan against intervening in currency markets at the G7 meeting. Japan also failed to win agreement that all G7 countries would shift to more expansionary fiscal policy to support growth.

The official summary that Japan’s finance ministry issued on Tuesday represents the G7 consensus and was similar to an informal statement it issued on Saturday after the meeting.

When Japan’s government issued the informal statement, it said the document did not represent the G7 consensus.

Reporting by Stanley White; Editing by Clarence Fernandez

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