Finance Chiefs Seek IMF Role to Avert ‘Currency War’

[Joanne98]

Source: Bloomberg

Oct. 9 (Bloomberg) -- Global governments called on the International Monetary Fund to calm the recent outbreak of tensions over currencies, which they warned risk triggering a protectionist backlash

Officials including U.S. Treasury Secretary Timothy F. Geithner and Brazilian Finance Minister Guido Mantega said the lender should help formulate initiatives on how countries can expand their economies without damaging those of other nations. The institution has called on most developed economies to boost exports while urging some emerging markets to step up domestic consumption and let their currencies appreciate.

“The IMF has an important role to play to help ensure that progress toward rebalancing strengthens and that the international adjustment process is permitted to work,” Geithner said in a speech at the IMF’s annual meeting today in Washington. “It is ultimately the responsibility of countries to act, but the IMF must speak out effectively about challenges and marshal support for action.”

Currency intervention by nations from China to Brazil and the prospect of easier monetary policy by the Federal Reserve have roiled foreign-exchange markets. China, the world’s fastest growing major economy, has limited gains in the yuan to about 2 percent against the dollar since June to the irritation of foreign officials who view it as undervalued and an attempt to boost the country’s exports.


Read more: http://noir.bloomberg.com/apps/news?pid=20601087&sid=apIVaOYNdVSg&pos=1

[AdHocSolver]

1. The best solution to the world's economic problems...

...is to get RID OF the IMF, the WTO, NAFTA, the World Bank, and their ilk that serve as stooges to promote corporate interests against the interests of the people.

[w4rma]

2. I am pro-currency war. (nt)