China asks major economies not to sharply devalue currencies

BEIJING -- Chinese Minister of Commerce Chen Deming said Friday major economies in the world should consider the spillover effect of their monetary policies and avoid drastic currency devaluation.

"Any major depreciation of the world's major currencies of the Japanese yen, the US dollar and euro means great trouble for China and other emerging economies," Chen said at a press conference on the sidelines of the parliament's annual session.

Chen said many countries have adopted quantitative easing policies according to their domestic needs .

"But such policies should not spill over to other countries," Chen said.

Chen's remarks reflected China's worries about a looming worldwide currency war that would see economies rush to devalue their currencies to buoy their economic recovery.

He reiterated that currency policymakers in the world's major economies should observe a consensus reached at a G20 meeting held last month to refrain from engaging in competitive currency devaluation.

G20 members promised at the meeting that they would not wage a currency war and agreed that monetary policies should primarily serve as a tool for domestic economies.