WTO’s Lamy says worried by currency interventions

BERLIN, Oct 30 (BestGrowthStock) – International attempts to
manipulate foreign exchange rates are a worry but the world has
not entered a foreign currency (Read more about trading foreign currency. war, World Trade Organisation
Director General Pascal Lamy said in a newspaper interview.
In the interview issued on Saturday, one day ahead of its
official publication, Lamy was asked by German weekly Welt am
Sonntag what risk there was of a currency war breaking out.

“I wouldn’t talk of a war, more like tensions and frictions.
The uncoordinated interventions on exchange rates worry me,” he
said, adding that he and other senior policymakers were
concerned that recent disputes could lead to protectionism.

Concerns that currency devaluations could spark trade wars
prompted the Group of 20 major economies to agree they would not
compete to lower the value of their foreign exchange rates at a
meeting in South Korea earlier this month.

Lamy added that there was no question that the Chinese yuan
was undervalued, but noted that “it was not clear that a higher
yuan rate would automatically create more jobs in America”.

Germany, Europe’s biggest exporter, has sparred lately over
trade policy with the United States, which sought to push
through a proposal at the G20 meeting to limit current account
imbalances to 4 percent of gross domestic product.

Asked by the paper whether he thought Germany was exporting
too much, Lamy said as WTO director general he could not be
expected to criticise it for trading successfully, adding that
the country served as an example to others.

(Reporting by Dave Graham; editing by Sue Thomas)

WTO’s Lamy says worried by currency interventions