MaximsNewsNetwork: IMF's YOUSSEF BOUTROS-GHALI: WORLD ECONOMY RECOVERING, STILL FRAGILE, UNEVEN

MaximsNewsNetwork: 09 October 2010 -- IMF: Washington, D.C. -- The International Monetary and Financial Committee Chairman Youssef Boutros-Ghali said on Saturday that the International Monetary Fund (IMF) is the place to deal with currency matters and other challenges facing the global economy; in a news conference after the IMFC met, Boutros-Gali stressed cooperation amid fears of a currency war as some economists warn that countries seeking to use weaker exchange rates to boost their economic growth could spark currency conflicts.

The IMFC acts as a steering committee to the IMF. The IMF wraps up its annual meetings in Washington on Sunday.

As IMF leaders called for a greater role for the IMF in monitoring and settling such disputes, Boutros-Ghali said the IMF is embracing reforms to improve the institution's role and effectiveness as a global body for macro-financial surveillance and policy collaboration.

"We have gone extensively into the reforms of the institution of the IMF: the reforms regarding quotas, governance, with all its components, the composition of the executive board, the size of the executive board. In a number of these elements, there has been significant progress."

IMF Managing Director Dominique Strauss-Kahn says he is hopeful governance reform will be agreed on in the near term.

"I think that an agreement will be found in the coming, lets say, weeks, maybe days, maybe weeks. It's not done because there's still some diverging views."

The managing director has been urging nations to cooperate to address the root causes of the global economic slowdown.

"Everybody realizes there is no single solution that you can apply in your country without having a plan at the global level. And, that's why cooperation is certainly one of the poles of this meeting. The other one is clearly the role of the IMF. And, really, I'm proud of that, that everybody -- I didn't listen to anybody saying the contrary -- is saying fine, the right place to do things is in the IMF."

The IMF issued a communiqué on Saturday pledging to "deepen" work on the issue of currency movements. But, Strauss-Kahn and Boutros-Gahli acknowledged the challenges.

"There's a rebalancing between surplus countries and deficit countries. There are frictions, obviously, you have read in the press. There are a number of points of friction. These are being addressed. The institution, we've come all to the conclusion that the IMF is the place to deal with these issues, exchange rate and others."

...... ( INTERNATIONAL MONETARY FUND: IMF ) ............................................

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