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World economic recovery at risk.

MILAN, October 28, 2010 (Balochistan Times): The recovery in the world economy is at risk due to currency market manipulation and a resulting increase in global trade imbalances, Bank of Italy governor Mario Draghi said on Thursday. Intervention in the forex markets is used by certain countries to support exports. Imbalances in international payments are on the rise, Draghi said. Currencies where the exchange rate is determined by the market are feeling the pressure gap between (that) policy and resulting speculative tensions. The world recovery is at risk, Draghi said at a World Savings Day event organised by Italian saving banks and associations. There is no other choice but to ensure greater coordination between the economic policies of the principal countries, he said, stressing that the Group of 20 developing and developed countries had already made this commitment. G20 countries agreed on Saturday to support world economic growth by working to limit global imbalances and to refrain from currency market intervention. The meeting came amid increasing concerns of that a currency war would see currencies try to boost exports by making them cheaper for overseas buyers at the risk of a beggar-thy-neighbour race to the bottom.

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Publication:Balochistan Times (Baluchistan Province, Pakistan)
Date:Oct 28, 2010
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