G-20 Debates Support for U.S. Call to Refrain From DevaluationOlga Tanas
The Group of 20 nations are debating calls to refrain from government intervention in currency markets, Russia’s central bank First Deputy Chairman Alexei Ulyukayev said.
“Delegates from international organizations and major economies are already taking the line in their speeches that market-determined exchange rates are an important element of firm, stable and long-term growth and that it’s not worth interfering with market forces,” Ulyukayev said today in an interview in the Russian capital. He declined to predict what the final communique will say.
The U.S. Treasury urged G-20 finance ministers and central bankers “to refrain from competitive devaluation, according to the Treasury’s Undersecretary for International Affairs Lael Brainard at Feb. 11 in Washington.
Ulyukayev said he ‘‘personally’’ supports the move.
Moving away from managed currencies is important to forming a new model of stable economic growth, he said.
‘‘Fiscal policy is just one part of these reforms,’’ the central banker said. ‘‘They include a freer, more dynamic labor market, lowering barriers to enter the market, more competitiveness.’’
The Italian and Spanish governments have made ‘‘significant’’ strides, he said.