JM News UK

Over reliance on currency depreciations to boost domestic economies could exacerbate global tensions over exchange rates, the head of the International Monetary Fund said on Thursday. The recent currency moves have exposed some emerging economies as well. "Excessive reliance on exchange rate depreciations to spur domestic activity could increase global currency tensions and should be avoided," IMF Managing Director Christine Lagarde said in her "Global Policy Agenda," which sums up the Fund's main advice and actions for its 188 member countries. The U.S. Treasury last week warned Europe against relying too much on exports, which have been spurred by a weaker euro, and also took South Korea to task for currency interventions.