China urges Japan, US, EU to avoid devaluation

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imagesChina’s commerce minister has advised other major governments to avoid suppressing the value of their actual currencies to help exports. In his opinion, this measure could cause damage to the global worth. Mr Chen Deming was answering to some of the questions made at the news conference on Friday about the weakness of Japan’s currency (the Yen). However, as he highlighted he wants to prevent also US and EU to making the same mistake. The Japanese Yen has decreased by approximately 20 per cent against the dollar since the middle of last year, creating fear in other governments, which has led them to believe they have to drop down their currency value in order to keep their exports competitive. The minister of commerce has highlighted that he is worried about competitive devaluation as this will have negative consequences on global economic growth.