The International Monetary Fund (IMF) said on Saturday that its members have pledged to refrain from competitive currency devaluations.

They promised to step up dialogue on trade, as escalating trade frictions and higher borrowing costs threatened to knock global growth.

The agreement came as U.S. Treasury Secretary Steve Mnuchin reiterated his concern over the yuan’s weakening against the dollar.

Such a drop, Washington suspects may be aimed at giving Chinese exports a trade advantage and offsetting U.S. tariffs.

In a communique issued by the IMF’s steering committee, the member countries also agreed to debate ways to improve the World Trade Organization so it can better address trade disputes.

Meanwhile, Bundesbank chief sees reducing chance that U.S.-China will escalate trade conflict

“We acknowledge that free, fair, and mutually beneficial goods and services trade and investment are key engines for growth and job creation,” the International Monetary and Financial Committee (IMFC) said.

“We will refrain from competitive devaluations and will not target our exchange rates for competitive purposes,” it added.

Fears that escalating global trade tensions and rising U.S. interest rates could dent growth have roiled global markets in recent days and prompted warnings of heightened risks by finance leaders.

“The recovery is increasingly uneven, and some previously identified risks have partially materialized,” the communique said, referring to threatened tariffs.

(Reuters/NAN)