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G-20 Seeks to Defuse Tension With Devaluation Pledge

Group of 20 finance chiefs sought to calm trade frictions that threaten the world economy by pledging to avoid weakening their currencies to boost exports and to let markets increasingly set foreign-exchange values.

The G-20 agreed to “move towards more market-determined exchange-rate systems that reflect underlying economic fundamentals and refrain from competitive devaluation of currencies,” finance ministers and central bankers said after talks yesterday in Gyeongju, South Korea. U.S. Treasury Secretary Tim Geithner said in an interview he’s optimistic China will “continue to move” and allow the yuan to appreciate more.