Wednesday, October 6, 2010
Warning against governments using exchange rates as a weapon
Dominique Strass-Kahn said governments are risking a currency war if they use exchange rates to solve their own problems. He told the Financial Times: "There is clearly the idea beginning to circulate that currencies can be used as a policy weapon." He added: "Translated into action, such an idea would represent a very serious risk to the global recovery ... Any such approach would have a negative and very damaging longer-run impact."