Reuters: EU's Rehn wants closer currency coordination

09 February 2013

The European Union's top monetary official wants closer coordination on currencies, to avoid potentially damaging disruptions to world trade.

The remarks by Economic and Monetary Affairs Commissioner Olli Rehn come amid a stand-off between France and Germany over whether a strengthening euro needs an official European response or whether markets should be left to set exchange rates. "I recognise the risk of competitive devaluation. We have recently warned the government of Japan about corresponding steps towards depreciation of the yen", said Rehn.

"We need reforms in the international monetary system so as to avoid negative influences on international trade. The coordination within the G7, G20 or the IMF should therefore be improved", he added, referring to policy-setting groups of leading nations and the International Monetary Fund.

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