PAC Pacific Current Group Ltd

WASHINGTON—Global financial leaders likely will reiterate previous currency policy commitments, a senior U.S. Treasury official signaled Monday, despite concerns that lackluster growth around the world may tempt some countries to use devalued currencies to juice exports.

A senior U.S. official, speaking ahead of a gathering of finance ministers and central bankers from the Group of 20 largest economies in Shanghai later this week, said exchange-rate commitments in previous G-20 communiqué s have been "constructive and helpful, and I think nicely articulate the rules of the game."

Central banks around the world, including in Europe and Japan, have expanded easy-money policies into uncharted territories, policies that are cheapening their currencies. China, meanwhile, is struggling to manage a slowdown and major economic overhaul, leaving many investors worried that Beijing may revert to yuan depreciation to goose exports. As central banks vie to gain monetary policy traction and the strengthening U.S. dollar threatens to damp American growth, speculation has grown the G-20 could orchestrate a coordinated exchange-rate adjustment.

Such a proposal is premature, say some G-20 watchers.

The senior U.S. Treasury official indicated the Shanghai meeting would simply replicate past commitments: "We will emphasize the importance for all G-20 members to honor their commitments to avoid persistent exchange-rate misalignments and not target exchange rates for competitive purposes."

The official did say U.S. Treasury Secretary Jacob Lew will "emphasize the value of ongoing communication and consultation in foreign-exchange management."

But that message was likely aimed at Beijing, where economic struggles and policy missteps in recent months have fueled market speculation authorities are preparing for a yuan depreciation strategy to offset declining growth.

The U.S. official praised recent comments by China central bank chief Zhou Xiaochuan saying the government isn't seeking a yuan devaluation and is committed to policy clarity.

Write to Ian Talley at ian.talley@wsj.com

(END) Dow Jones Newswires

February 22, 2016 15:25 ET (20:25 GMT)

Pacific Current (ASX:PAC)
Historical Stock Chart
From May 2024 to Jun 2024

Pacific Current (ASX:PAC)
Historical Stock Chart
From Jun 2023 to Jun 2024