IMF members vow to avoid competitive devaluations

The IMFC said in a communique that members also recognised the need to continue to step up dialogue on trade and improve the World Trade Organization.
The IMFC said in a communique that members also recognised the need to continue to step up dialogue on trade and improve the World Trade Organization.PHOTO: AFP

Economic chiefs from around the world - including China and the United States, which have been warring over the falling yuan - pledged in Bali yesterday to refrain from competitive devaluations.

The 24-member steering committee of the International Monetary Fund (IMF) said in its communique that strong fundamentals, sound policies and a resilient international monetary system are crucial to the stability of exchange rates, and contribute to sustainable growth and investment.

US Treasury Secretary Steven Mnuchin yesterday pushed back against warnings that the US' trade fight with China imperils the world economy, saying that pushing Beijing to open up will be good for all.

Meanwhile, Mr Jack Ma, Chinese tech giant Alibaba's co-founder, who has set his eyes on the largest Internet economy in South-east Asia, said he wanted to set up a Jack Ma Institute to train Indonesians on e-commerce and the Internet.

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A version of this article appeared in the print edition of The Sunday Times on October 14, 2018, with the headline 'IMF members vow to avoid competitive devaluations'. Print Edition | Subscribe