I.M.F Issues Warning and Plea About Impending Currency Wars

Brazil's finance minister put the cards on the table this week calling it as it is: major countries trying to devalue their currencies to obtain benefits for themselves. Now The I.M.F. asked the world's major economies to tavoid an exchange war, classifying suhc war as a struggle that could undermine global economic recovery. The plea was made by Dominique Strauss-Kahn himself, its managing director,


"We have succeeded in avoiding a major crisis due to economic coordination, especially in terms of monetary and fiscal stimulus,"  "But now we have another threat, which is that the consensus and cooperation have diminished. We see the possibility of the wrold starting a war exchange."

Strauss-Kahn said the authorities need to get back to talking about cooperation, discussing the value of the currencies, trying to adjust what needs to be adjusted and addressing global imbalances."

Without such cooperation, there will be a new crisis, "countries trying to find domestic solutions to a global problem,".