The United States will push economic strength member Group of 20 (G20) to avoid other "competing currency policy 'during the G20 meeting this week, U.S. Treasury Secretary Jacob Lew said Wednesday.
'We will continue to press the G20 countries to avoid policy spiral' beggar thy neighbor ',' Lew said in a speech at a university in Washington, according to the prepared text.
Policy of 'beggar thy neighbor' is the economic policy of a country that is applied to fix the economic problems in a way that tends to exacerbate the economic problems of other countries.
One of the policy of 'beggar thy neighbor' who lately tend to do some states in the face of the economic crisis is 'Competitive Devaluation' (competitive devaluation), which measures the currency devalued that aims to improve the competitiveness of its exports.
'It is essential that all G20 countries to follow up their recent commitment not to target the exchange rate for competitive purposes, "Lew added.
Last Friday (12/4) U.S. Treasury, in a semi-annual report on foreign exchange policies to Congress, said that China's yuan currency remains "significantly undervalued" and warned Japan and South Korea to use the exchange rate to gain a competitive advantage.
New U.S. Treasury Secretary, Timothy Geithner who replaced at the end of February, indicating the Obama administration is closely monitoring the actions of its partners in the Group of Seven (G7) richest countries. Accordingly such dilansi analisadaily, Friday (19/04/2013)
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