BRUSSELS (Reuters) - Relationships between major world currencies should be studied as part of a global overhaul of the financial system in the wake of the financial market crisis, French President Nicolas Sarkozy said on Thursday.
“Another subject in tomorrow’s world is that of the great currencies. How many should there be? What should the agreement between these great currencies be? Should we organize a discussion? Should a country like India one day have a global currency?” Sarkozy told a news conference.
“These are subjects that should be discussed ... I strongly believe that all these subjects should be on the table, that we should prepare an ambitious agenda, that we should equip ourselves with initial conclusions for a first summit that I would like to be held in November,” he said.
France has been a vocal critic of the euro’s strength when the single currency was climbing to all-time highs against the dollar in the first six months of 2008, saying it was impairing French exports and therefore growth.
Financial leaders of the Group of Seven industrialized countries — the United States, Canada, Japan, France, Britain, Italy and Germany — agreed on common terms of reference on foreign exchange at their meeting last Friday, calling on China to allow a faster appreciation of its currency.
Sarkozy and European Commission President Jose Manuel Barroso are to meet U.S. President George Bush this Saturday to discuss a global summit to overhaul the world’s financial system and institutions.
Reporting by Jan Strupczewski, editing by Mark John