IMF’s Lipsky: Major traded currencies not far from long-term equilibrium levels

The IMF does not think the worlds major trading currencies are at levels that would threaten the global economic recovery.

First Deputy Managing Director Lipsky has said “What we find today among the major traded currencies is that, in broad multilateral, effective terms, inflation-adjusted terms, for the major traded currencies there does not appear to be a problem in restoring and sustaining growth.”

Asked about European official’s concern over the strength of the euro versus the dollar, primarily voiced by the French, Lipsky added “We don’t take views on bilateral pairs, but on a trade-weighted, inflation-adjusted basis, there aren’t substantial deviations from what we’d see as consistent with long-term equilibrium. Lipsky went on to opine “I suspect what we’re talking about is worries of potential moves in the future that could cause problems, and that’s exactly what this new framework of collaberation is designed to avoid. “