French Finance Minister: The Euro is a victim of the currency war between the US and China
French Finance Minister Christine Lagarde on Sunday said global foreign-exchange imbalances must be tackled, as the euro is the victim of a weak U.S. dollar and Chinese yuan. Via WSJ:
"We must reform the international monetary system so that the euro is not caught in the middle, hit by the expense of trade-offs between two currencies that are deliberately weak," Ms. Lagarde said in an interview on television channel France 5.
France has set out an ambitious agenda of monetary changes for its presidency of the Group of 20 industrialized nations this year. It has long argued that the international monetary system relies too heavily on the U.S. dollar, leading fast-growing countries such as China to amass huge dollar-denominated currency reserves that feed foreign-exchange volatility and weigh on the global economy.