PARIS -(Dow Jones)- The Group of the 20 industrialized and developing nations must come up with a common diagnosis of the causes of the current foreign exchange instability, European Central Bank governing council member Christian Noyer said Wednesday, amid persistent worries that world leaders are struggling to see eye to eye the issue.
"France wants to open the debate. It's not about triggering big changes, but about drawing the consequences of the in-depth evolutions" that took place on the global economic scene, Noyer, who is also governor of the Bank of France, said in an address to financial market professionals here.
France has made reforming the international monetary system the top priority of its G20 presidency and wants the global currency system to be less reliant on the U.S. dollar and more multi-polar. But fostering consensus may prove challenging amid persistent differences between G20 members.
The debate is in particular locked between China and the U.S., with the latter calling on China to let the yuan appreciate faster, while China says low U.S. saving and interest rates are fueling volatile capital flows into emerging economies, putting upward pressure on their currencies.
Noyer said the reform of the international monetary system should address volatile capital flows and currency misalignments, as well as the excessive accumulation of foreign exchange reserves, in order to create a more balanced global growth.
French President Nicolas Sarkozy is due to outline the priorities of its G20 presidency in a speech Monday.
Source: http://www.automatedtrader.net
No comments:
Post a Comment