Excessive reliance on weak FX rates to be avoided – IMF’s Lagarde

FXStreet (Mumbai) - The International Monetary Fund (IMF) chief Lagarde was on the wires today stating that economies should avoid over reliance on weak FX rates.

However, Lagarde advised Japan and Eurozone to keep their respective monetary policies looses; something which has been widely criticized as a move aimed at keeping FX rates low. Meanwhile, Germany and Netherlands were advised to tap fiscal policy support.

Lagarde called for a credible medium term budget plan in the US and broader financial and market based controls in China.