IMF plans initiative to avert currency war -paper

[Ghost Dog]

Source: Reuters / Frankfurter Allgemeine Zeitung

BERLIN Oct 8 (Reuters) - International Monetary Fund chief Dominique Strauss-Kahn plans to present the lender's members with a new initiative this week aimed at resolving disputes over currency issues, a German newspaper reported on Friday.

Strauss-Kahn's planned "systemic stability initiative" will bring together the world's leading economic powers in a regular forum aimed at resolving currency issues over the medium-term, the Frankfurter Allgemeine Zeitung reported.

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Global tensions over exchange rates are set to be a hot topic this Friday and Saturday at a gathering of finance ministers and central bankers for meetings of the IMF and World Bank.

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Participants in the forum would include the United States, large European countries, Japan, China and other emerging market countries that are important for the global financial system, the German newspaper report said. IMF management would also play a role.

Read more: http://uk.reuters.com/article/idUKLDE69706W20101008

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This of course would make sense (as would something like Keynes's Bancor), as the start of a fundamental review of the Bretton Woods System. But for some reason I doubt decision-makers in US & UK will allow it to fly.