IMF economist Lipsky says the the dollar is the dominant reserve currency and will remain so for the foreseeable future. The idea of an alternative currency is a topic worthy of study but it it is not a near-term issue, he says.

One interesting factoid from Lipsky: About 50% of US toxic assets ended up on the balance sheets of European banks…

UPDATE Lipsky says Greece has the same rights to IMF help as any member but says the EU has made it clear they want to handle the matter on their own.

EUR/USD is stalled in the low 1.3750s.

After last week saying there would be no meeting between Greece and the IMF as the Greek leadership decended on Washington, today the IMF says there will be “informal” talks between Finance Minister Papaconatantinou and the IMF…Perhaps there will be some “technical” discussions as well…

The IMF welcomes the substantial fiscal measures announced by Greece today and says implementation will be crucial.

Greece should soon implement significant plans to boost productivity and growth. (Easier said than done…)

The IMF stands ready to support Greece’s plans through technical assistance.

I say George, steady.

Just like a game of call my bluff.

An IMF report to the G20 just hit the wires and says the dollar is still somewhat overvalued while the depreciation of the euro has moved it closer to its fundamental value. The JPY is broadly in-line with its fundamental value, the Fund says.

The world economy will grow 3.9% in 2010 and 4.3% on 2011, the IMF says, unchanged from earlier forecasts.

Countries like Greece are a key risk, the IMF says.

Monetary policy in advanced economies can remain accomodative.

EUR/USD is near afternoon highs, trading near the 1.3960 level. EUR/GBP has recovered to 0.9045.

The appointment of Zhu Min as adviser to Strauss-Kahn will” help the Fund better understand Asia and Emerging Markets”, the IMF says. Aren’t they already supposed to understand Asia and the emerging markets?

Just to add to the risk averse backdrop, the IMF says most countries should not rollback stimulus measures in 2010 as there is little evidence that private demand is self sustaining. Low inflation means central banks of the major economies can keep rates low for an extended period. Emerging economies may need to tighten sooner, the fund says.

EUR/USD continues to find support in the 1.3540 area on dips.

• Euro zone bond would not solve structural problems of countries like Greece
• Does not see need for IMF help for Greece
• Greek bankruptcy “is not a scenario for me”
• Greece must correct it’s errors

Austrian Chancellor says expects Greek package to involve some form of IMF involvement and loans by EU countries.

IMF involvement, interesting. 

EUR/USD touch lower at 1.3775 with ACB having sold up at 1.3785/90.

• The German economic recovery will be moderate with predominately downside risks.
• GDP growth will be 1.5% in 2010 and 1.9% in 2011, the IMF forecasts.
• Budget cutting should begin as soon as the economy firms, which the IMF sees in 2011.
• There is little time to address the remaining risks in the German financial sector, the IMF reports. The health of the sector has improved, though.
• Export growth will be limited by US consumer restraint and muted euro area growth.
• The German deficit to GDP ratio will rise to 5.5% in 2010

• 1
• 2
• 3
• 4
• 5
• ...
• 8
• >