G20 finance ministers and central bank governors pledged to take decisive action to keep the economic recovery on track, in a communique adopted at the end of the two-day crucial meeting on Saturday.
The communique said that G20 finance ministers and central bank governors will try to avoid persistent exchange rate misalignments and continue to monitor developments, assess spillovers and address emerging risks as needed to foster confidence and financial stability.
"Monetary policies will continue to support economic activity consistent with central banks' mandates," the communique said, adding "monetary policy tightening is more likely in some advanced economies."
On the issue of currency war, economic policy makters stressed in the document: "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."
Facing the worldwide challenges, finance ministers and central bank governors said that they will carefully calibrate and clearly communicate their actions, especially against the backdrop of major monetary and other policy decisions, to minimize negative spillovers, mitigate uncertainty and promote transparency.
The communique said: "We remain committed to timely and effective implementation of our growth strategies that include measures to support demand and lift potential growth."
Christine Lagarde, Managing Director of the International Monetary Fund (IMF), said: "Downside risks to the outlook have increased, particularly for emerging market economies. Against this backdrop, policy priorities have taken on even more urgency since we last met in April."
The major challenge facing the global economy is that growth remains moderate and uneven, she said. For the advanced economies, activity is projected to pick up only modestly this year and next.
For the emerging market economies, prospects have weakened in 2015 relative to last year, though some rebound is projected next year. For both the advanced and emerging economies, productivity growth continues to be low," she said.
The IMF chief called for a concerted policy effort from the members states to address these challenges, including continued accommodative monetary policy in advanced economies; growth-friendly fiscal policies; and structural reforms to boost potential output and productivity.