Against the backdrop of fears that China's steep devaluation of the Yuan last month may trigger a global currency war that may fuel instability in the already struggling world economy, top finance chiefs from the G20 urged countries to adopt market-determined currency rates and refrain from competitive devaluation.
"We reiterate our commitment to move toward more market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals, and avoid persistent exchange rate misalignments. We will refrain from competitive devaluations, and resist all forms of protectionism," said the communique issued at the end of the two-day meeting of the G20 Finance Ministers and Central Bank Governors at Ankara, Turkey, even as the leaders stopped short of naming China.
The steepest Yuan devaluation undertaken by China in two decades in August has pushed global stock markets into a freefall.
The G20 economic and finance chiefs also vowed to take decisive measures to prop up the global economy and help achieve sustainable, strong and balanced growth via carefully calibrated macroeconomic and structural policies.
"We have pledged to take decisive action to keep the economic recovery on track and we are confident the global economic recovery will gain speed. We will continue to monitor developments, assess spillovers and address emerging risks as needed to foster confidence and financial ability", the G20 said.