U.S.' Lew says must avoid
competitive devaluation in meeting with Aso
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[October 08, 2016]
By Leika Kihara
WASHINGTON (Reuters) -
U.S. Treasury Secretary Jack Lew stressed the importance
of adhering to a Group of 20 agreement to refrain from
competitive currency devaluation in a meeting with his
Japanese counterpart Taro Aso, the U.S. Treasury
Department said on Friday. |
![](../images/100816pics/busine77.jpg)
Jack Lew, United States Secretary of the Treasury, is
seen during a meeting with students at Autonomous
Technological Institute of Mexico (ITAM), in Mexico
City, Mexico, in this September 29, 2016 file photo.
REUTERS/Edgard Garrido |
"Secretary Lew underscored that the commitments made by the G20
in Shanghai to use all policy tools ... to promote growth,
refrain from competitive devaluation and not target exchange
rates for competitive purposes," have contributed to confidence
in the global economy in recent months, the Treasury Department
said in a statement.
Lew and Aso met on Friday on the sidelines of the International
Monetary Fund and World Bank meetings.
In an earlier news conference on Friday, Lew said Washington
"continued to emphasize the need" for countries to refrain from
"begger-thy-neighbor" policies of attempting to weaken their
currencies to revive their economies.
Japanese policymakers have frequently threatened to intervene in
the currency market to stem sharp yen rises that could hurt
exports. Washington has consistently warned Tokyo against
intervening, branding such attempts as competitive devaluation.
In the news conference, Lew welcomed Japan's decision to
postpone a second sales tax hike and compile a fiscal stimulus
package to revive growth.
(Reporting by Leika Kihara; Editing by Shri Navaratnam)
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