In a note to the G20 finance ministers published Wednesday, February 23, the International Monetary Fund (IMF) is calling for a weaker dollar, which he said would help the U.S. reduce its deficits vis-à-vis other countries in the world and rebalance the global economy. In this document, the institution of Washington indicates that according to his calculations, the exchange rate of the dollar is overvalued, rather, those of the euro and the yen "broadly consistent" with economic fundamentals, and that many emerging Asian currencies are "dumped".
Therefore, he said, the G20 should allow a weaker dollar. In his diagnosis on the global economy (PDF in English) for the Ministers meeting in Paris on Saturday and Sunday, the IMF has expressed a growing concern. "The downside risks remain high in the advanced economies, while the risks of overheating are increasing in emerging economies," he warned.
Among the threats to global growth, the IMF noted "tensions in the periphery of the eurozone" (highly indebted countries such as Greece, Ireland and Portugal) and "insufficient progress in designing plans Fiscal consolidation in the U.S. and Japan ". The IMF has estimated such "highly unlikely" that the United States respects their commitment to halve the budget deficit between 2010 and 2013, taken at a summit of rich countries and G20 emerging in Toronto in June 2010.
Therefore, he said, the G20 should allow a weaker dollar. In his diagnosis on the global economy (PDF in English) for the Ministers meeting in Paris on Saturday and Sunday, the IMF has expressed a growing concern. "The downside risks remain high in the advanced economies, while the risks of overheating are increasing in emerging economies," he warned.
Among the threats to global growth, the IMF noted "tensions in the periphery of the eurozone" (highly indebted countries such as Greece, Ireland and Portugal) and "insufficient progress in designing plans Fiscal consolidation in the U.S. and Japan ". The IMF has estimated such "highly unlikely" that the United States respects their commitment to halve the budget deficit between 2010 and 2013, taken at a summit of rich countries and G20 emerging in Toronto in June 2010.
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