UPDATE 1-G20 to vow to avoid "competitive devaluation"

GYEONGJU, South Korea, Oct 23 (BestGrowthStock) – Finance leaders
from the Group of 20 economies will pledge on Saturday to commit
themselves to pursue market-determined exchange rates and refrain
from “competitive devaluation” of their currencies, a G20
official said.

A communique to be issued at the conclusion of the G20
finance ministers’ and central bank governors’ meeting here will
state: “We’re all committed to moving toward market determined
exchange rates that reflect underlying fundamentals and refrain
from competitive devaluation,” said the official, who spoke on
condition of anonymity.

The G20 also in the communique will pledge to reduce
excessive trade imbalances, but the statement will not contain
specific targets for current account surpluses nor deficits, the
official added.

“Countries will pursue a full range of policies conducive to
reducing excessive imbalances. Persistently large imbalances
would warrant an assessment” by the IMF, according to the
communique language.

While the United States would support current account targets
of 4 percent of gross domestic product by 2015, a U.S. official
said there were no expectations of including that level in the
statement.

The G20 finance deputies wrangled over the language in a
marathon negotiating session that ended at 5 a.m. in South Korea
on Saturday and agreed to give the International Monetary Fund
enhanced surveillance powers to help police imbalances, and said
they would welcome IMF “spillover reports” that asseess the
effects of one country’s monetary policies on others.
(Reporting by David Lawder; Editing by Tomasz Janowski)

UPDATE 1-G20 to vow to avoid "competitive devaluation"