G20 countries agree to move toward more market-determined exchange rate system

The G20 countries have agreed to move toward more market-determined exchange rate systems and enhance exchange rate flexibility, according to the joint communique issued on Friday afternoon after the end of the summit.

The G20 countries also agreed to refrain from competitive devaluation of currencies, it said.

But when G20 countries are facing undue burden of adjustment, policy responses in emerging market economies with adequate reserves and increasingly overvalued flexible exchange rates may also include carefully designed macro-prudential measures, said the communique.

Advanced economies, including those with reserve currencies, will be vigilant against excess volatility and disorderly movements in exchange rates. "Together these actions will help mitigate the risk of excessive volatility in capital flows facing some emerging market economies," it said.

Over the monetary and exchange rate policies, "we affirm the importance of central banks' commitment to price stability, thereby contributing to the recovery and sustainable growth," it said.

Source:Xinhua