G20 Meeting in China: US Against Devaluation

July 22, AtoZForex – Ahead of the G20 meeting in China Jacob Lew,  the US Secretary of the Treasury, stated that top countries should not take advantage of devaluing their currencies.

The finance ministers and central bank governors of 20 major economies will gather during the upcoming Saturday and Sunday in the city of Chengdu, Sichuan province. The summit will be held by the governor of People’s Bank of China, Zhou Xiaochuanled, and the finance minister, Lou Jiwei.

According to Jacob Lew, the world view highlights the obligation taken by countries during the previous G20 summit in Shanghai to cooperate on an exchange rate policy and to avoid competitive devaluation. Furthermore, he mentioned that

“We have seen progress in this regard since the last G20 meeting, and we will continue to encourage the use of the full range of policy tools to promote shared, sustainable growth”.

Brexit Discussions

During the G20 meeting in China finance ministers and bank governors are likely to have the discussions in regards to the UK’s referendum to leave the EU which happened last month and the effects it will have on the UK, Europe and the rest of the world.

Will Greek economy recover?  

Moreover, Jacob Lew said that after the meeting the investors should get a ‘long-term clarity’ on the perspective of how to restore the economy of Greece. According to the US secretary,

“the challenge is to get the trajectory onto a path where it is clear that Greece can sustain its debt. To the investor world, the notion that it’s okay now but may not be okay in the future is not a good signal”.

The International Monetary Fund, IMF, stated that they will not give any more money to Greece until Europeans make a concrete plan on how to reduce the Greek debt. This caused the contradiction between the IMF and the EU on whether the Greek economy will improve after the ongoing reforms and if it will be able to pay back the debt.

See also: Citi Forex forecast for G10 currencies

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