Investing.com – U.S. Treasury Secretary Jacob Joseph "Jack" Lew applauded international cooperation to safeguard the global economy on Monday, but warned against the dangers of competitive devaluation in currency markets.
While pointing out that currency fluctuations were "a normal and even desirable attribute of the global economy", Lew applauded the G-20's commitment to refrain from competitive devaluation and consult on foreign exchange markets to avoid surprises that could threaten global financial stability.
"When the values of currencies are allowed to move according to market forces, the global economy can better adapt to changes in relative economic performance among countries," Lew wrote in a op-ed piece for Foreign Affairs.
"What is unacceptable, however, is intervention in foreign exchange markets in order to gain a competitive advantage in trade or impede adjustments in the balance of payments," he added.
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