News / Economy

    IMF, World Bank Say Currency Dispute Could Harm Recovery

    International Monetary Fund Managing Director Dominique Strauss-Kahn, right, and World Bank President Robert Zoellick prepare for a meeting of the G-24, during the annual IMF and World Bank meetings in Washington, 07 Oct 2010
    International Monetary Fund Managing Director Dominique Strauss-Kahn, right, and World Bank President Robert Zoellick prepare for a meeting of the G-24, during the annual IMF and World Bank meetings in Washington, 07 Oct 2010

    Multimedia

    Audio

    Top international economic leaders said continuing disputes over currencies and trade could escalate and hurt the fragile economic recovery.  The heads of the World Bank and the International Monetary Fund both had blunt warnings Thursday for national and economic leaders.

    World Bank President Robert Zoellick says if nations do not stop bickering and start compromising on currency issues, the economic downturn could get far worse.  "First, one needs to manage the tensions, if one lets this slide into conflict or forms of protectionism, then we run the risk of repeating the mistakes of the 1930s."

    Those mistakes preceded the Great Depression.

    The warning comes as the United States, China, European and other nations continue squabbling over the value of currencies.  Also, Japan recently intervened in markets to push down the value of its currency, the yen.

    Zoellick says the tensions grow out of the slow and uneven economic recovery, which is leaving millions of people out of work.  "Whenever you have high unemployment, you have risks of other tensions, we see this now in debates on currencies."

    Having a weaker currency can help cut unemployment by boosting exports.  It does this by making a nation's products less expensive and easier to sell on international markets.  More sales mean more demand for products and more jobs.

    That strategy will not work, however, if too many nations try to do it at once.  This means the various nations need to work out compromises, but it is hard to make deals right now because high unemployment is putting domestic political pressure on national leaders.

    The head of the International Monetary Fund, Dominique Strauss-Kahn, urged political and economic officials to tone down their rhetoric and find less provocative ways to bolster their economies.  "Many (nations) do consider their currency as a weapon, and that is certainly not for the good of the global economy."

    The IMF chief also sent a message to emerging economies that have been clamoring for a greater voice in IMF decisions.  Strauss-Kahn said countries that want to have a greater say also need to accept more responsibility for maintaining a healthy global economy.

    The IMF and the World Bank have called for China to allow the value of its currency to rise.  But economic experts say one of China's major trading partners, the United States, should also make changes, like cutting budget deficits and boosting savings.

    Related video report by Mil Arcega:

    You May Like

    Top US General: Turkish Media Report ‘Absurd'

    General Dunford rejects ‘irresponsible' claims of coup involvement by former four-star Army General Campbell, who led NATO forces in Afghanistan before retiring earlier this year

    Video Saving Ethiopian Children Thought to Be Cursed

    'Omo Child' looks at efforts of one African man to stop killings of ‘mingi’ children

    Protests Over Western Troops Threaten Libyan 'Unity' Government

    Fears mount that Islamist foes of ‘unity' government plan to declare a revolutionaries' council in Tripoli

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    London’s Financial Crown at Risk as Rivals Eye Brexit Opportunitiesi
    X
    VOA News
    July 25, 2016 5:09 PM
    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Four Brother Goats Arrive in Brooklyn on a Mission

    While it's unusual to see farm animals in cities, it's become familiar for residents of Brooklyn, New York, to see a little herd of goats. Unlike gas-powered mowing equipment, goats remove invasive weeds quietly and without adding more pollution to the air. As Faiza Elmasry tells us, this is a pilot program and if it proves to be successful, the goat gardener program will be extended to other areas of New York. Faith Lapidus narrates.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.9105
    JPY
    USD
    106.21
    GBP
    USD
    0.7618
    CAD
    USD
    1.3171
    INR
    USD
    67.348

    Rates may not be current.