_Stockcafeteria版 - Finance Chiefs Seek to Soothe Not Solve `Currency War' at IMF |
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发帖数: 644 | 1 Global finance chiefs warned a race to weaker exchange rates risks hurting
the world economy even as they sought to downplay investor fears of a “
currency war.”
As the International Monetary Fund’s annual meeting began in Washington,
policy makers expressed concern that efforts to boost exports by embracing
weaker currencies threatened a surge in protectionism at a time when global
growth is already slowing. China was again the target of criticism as
foreign officials called the yuan undervalued and pushed for its rise to be
accelerated.
“This is a crucial time that we need to address the commitment of our
leaders to free trade, that we avoid protectionist measures,” Canadian
Finance Minister Jim Flaherty told reporters. “That includes protectionist
measures with respect to currencies.”
Currency intervention by nations from Japan to Brazil and a the prospect of
easier monetary policy by the Federal Reserve are roiling foreign-exchange
markets. The dollar today dropped below 82 yen for the first time since 1995
, and the euro yesterday passed $1.40 for the first time in eight months.
“We want peace not war,” French Finance Minister Christine Lagarde told
reporters.
While Brazilian Finance Minister Guido Mantega suggested the Group of 20
strike a deal akin to 1985’s Plaza Accord, which successfully weakened the
dollar, most ministers declined to offer concrete solutions.
‘Too Strong’
Luxembourg Prime Minister Jean-Claude Juncker, who chairs a panel of euro-
area finance ministers, said the euro is “too strong” and labeled the yuan
“more than undervalued.”
Brazilian Central Bank President Henrique Meirelles said a currency
agreement is unlikely in the short-term and blamed recent volatility on an
excess of dollars generated by loose monetary policy in the U.S. and other
industrial nations.
“Brazil cannot pay an excessive price for the fact it’s doing well while
others are doing badly,” he said. “Brazil needs to take its measures to
protect itself from these imbalances.”
Japanese Finance Minister Yoshihiko Noda said his government also remains
ready to act on the yen when needed, although it doesn’t intend to return
to the long-term, large yen selling of the past. Thai Prime Minister Abhisit
Vejjajiva said today his cabinet will meet next week to consider ways to
help exporters cope with the baht’s climb to a 13-year high.
Chinese officials are pushing back against calls for a weaker yuan.
‘Social Upheaval’
People’s Bank of China Vice Governor Yi Gang said in Washington yesterday
that a major shift in the yuan would cause “social upheaval” and that the
government is taking a “gradual” approach. While the currency today rose
to the highest level against the dollar since 1993, it is still only about 2
percent higher than it was when China said in June it would make it more
flexible.
Russian Deputy Finance Minister Dmitry Pankin added to the tension by saying
Brazil, Russia, India and China have united to show “rather strong
resistance” to attempts to make “any harsh appraisal” of currency
controls.
Cautioning that using currencies as a tool of economic policy can “lead to
very bad situations,” IMF Managing Director Dominique Strauss-Kahn said his
staff is working on “spillover reports” to highlight how the actions of
one economy affect others.
Global Impact
Investors and economists today said continued exchange-rate volatility could
hurt the world economy.
In an article in the Financial Times, billionaire investor George Soros said
he shares “the growing concern about the misalignment of currencies” and
that talk of a currency war “is not far off the mark.”
New York University Professor Nouriel Roubini, who predicted the 2008 credit
crisis, said in Washington that the euro at $1.40 is “painful” for the
euro area, and that it may relapse into a recession.
To contact the reporters on this story: Simon Kennedy in Washington at
s*******[email protected] |
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