BERLIN (MNI) – International Monetary Fund managing director
Dominique Strauss-Kahn said Friday that foreign exchange rate regimes
needed to become more flexible in order to tackle the problem of global
imbalances.
“The idea that we can solve the imbalances problem without
important changes in the relative values in the currencies is something
that I just cannot understand,” Strauss-Kahn said at a panel discussion
at a conference organized by the ECB in Frankfurt. “I understand the
difficulties, but we need to move in that direction.”
Despite the worldwide recovery from the crisis, “I think that
wherever it’s possible, supporting growth is still absolutely
necessary,” the IMF managing director insisted, “even if the support to
growth creates some side problems.”
On the question of capital controls, Strauss-Kahn said “my feeling
is there should be maybe…a framework qualifying the way to act.”
–Berlin bureau: +49-30-22 62 05 80; twidder@marketnews.com
[TOPICS: MT$$$$,M$X$$$,MGX$$$,MI$$$$,M$$FX$]
