Finance ministers and central bankers on Saturday called for the International Monetary Fund (IMF) to "deepen its work" in addressing a conflict over currencies and growing imbalances between wealthy and emerging world powers. But the ministers did not offer the IMF a concrete role in monitoring exchange rates, something the United States had called for as it raises pressure on China and other emerging powers to allow their currencies to appreciate, according to dpa. In a statement following a meeting of the IMF's steering committee, ministers said "tensions and vulnerabilities" remained in the global economy because of "widening global imbalances, continued volatile capital flows, exchange rate movements." The IMF should "deepen its work in these areas, including in-depth studies to help increase the effectiveness of policies to manage capital flows," the statement said. IMF Managing Director Dominique Strauss-Kahn has backed the US and Europe in calling China's currency undervalued, but the committee statement did not weigh into the debate over the value of particular currencies. The statement also offered no concrete proposals on reforming voting rights in the IMF, but called on Strauss-Kahn to report back to the committee by the end of this month on "progress on quota and governance reforms." Emerging and developing countries are pushing for more say in the IMF. Governments have agreed to reach a deal on voting reforms by the end of this year.
