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US Treasury Secretary says risk of competitive devaluation greatly reduced

U.S. Treasury Secretary Jack Lew said the key takeaway from the conclusion of the G20 meetings in Shanghai was that no country would competitively devalue their currency in a way that would trigger the outbreak of a fresh round of currency wars.

"Leaving the Shanghai G20 with the risk of competitive devaluation greatly, greatly reduced because of the commitment is significant," he told reporters in Hong Kong.

Jack Lew, Treasury Secretary.
David Orrell | CNBC
Jack Lew, Treasury Secretary.

The world's top economies declared on Saturday that they need to look beyond ultra-low interest rates and printing money to shake the global economy out of its torpor, while renewing their focus on structural reforms to spark activity.

On China, Lew said he heard confidence from Chinese officials on managing the transition with a range of structural, monetary and fiscal tools.

China's central bank has resumed its easing cycle, injecting an estimated $100 billion worth of long-term cash into the economy to cushion the pain from job layoffs and bankruptcies in industries plagued by overcapacity.