WASHINGTON Feb 11 Finance ministers from the
Group of 20 nations should send a clear signal to financial
markets this week that they are coordinating policies and not
embroiled in a "currency war," the head of a global banking
group said on Monday.
"Right now there seems to be a bit of a message void and
that message void is filled by whoever has the microphone on a
particular week," Institute of International Finance Managing
Director Timothy Adams told a news conference.
Adams, who served as U.S. Treasury undersecretary for
international affairs during President George W. Bush's
administration, dismissed the idea that current tensions over
foreign exchange rates amount to a "currency war."
The Group of Seven rich nations are considering a statement
this week reaffirming their commitment to "market determined"
The tensions have been prompted by Japan's aggressively
expansionary monetary policies, which have weakened the yen
"I don't think it's a currency war, maybe it's a slight
skirmish," Adams told reporters. "It is less to do with
policymakers targeting the exchange rate and more about
policymakers trying to implement policies to deal with domestic
"Policymakers still need to cooperate and communicate how
they are going about it because markets are interpreting it as
an effort to manipulate exchange rates," he added. "Whether it
was intended or not, it has happened that way, and policymakers
need to communicate to markets that is not their intention and
better explain to markets what they seek to achieve and do it in
a way that minimizes potential volatility," he Adams said.