Many emerging economies are concer loan credit insurance ned that when the Fed raise borrowing costs, investors take money from other markets and buy dollar assets, leading to the depreciation of currencies of emerging markets.
Authorities emerging countries wanted the statement of finance ministers and central bankers of the Group of 20 major economies to declare that the rise of interest in the US now would be a risk to growth. However, the design avoids this language.
"We note that, in line with the economic outlook improving, the tightening of monetary policy is more likely in some advanced economies," brought the draft statement seen by Reuters on Friday.
"We will carefully calibrate and clearly communicate our measures to minimize the negative contagion, mitigate the uncertainty and promote transparency," said the statement, which can still be changed before it is finally closed on Saturday (5).
The text celebrates the strengthening of activity in some economies, but says that global growth is below expectations.
The draft also indirectly addresses the devalua loan credit insurance tion of the yuan made by China in August, a sign that the measure was not seen as competitive devaluation to support Chinese exports.
"We reiterate our commitment to move towards exchange systems more market-determined and flexibility of exchange rates to reflect fundamentals, and avoid persistent misalignments in the exchange rate. We will not do competitive devaluations and resist all forms of protectionism," brings the document.
Written by Sergio
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