Latest developments in international currency exchange rates

12.10.2010

Question for oral answer O-0145/2010
to the Commission
Rule 115
Jean-Paul Gauzès
on behalf of the PPE Group

The Head of the IMF said last week that, ‘Governments are risking a currency war if they try to use exchange rates to solve domestic problems’. In recent weeks, several major economies have taken action to relieve upward pressure on their currencies. Japan intervened in the currency markets to sell yen for the first time in six years. Last Monday, Brazil doubled a tax on the foreign purchase of bonds in an attempt to reduce inflows. The Chair of the group of Euro-area finance ministers has said recently that the ‘Chinese currency is broadly undervalued’. The dollar/euro exchange rate is at its lowest level for 18 months.

Most EU economies are undertaking major fiscal adjustments programmes; the exchange rate measures taken by our major competitors are undermining the fragile EU and global recovery.

What does the Commission intend to do?

Tabled: 12.10.2010

Forwarded: 14.10.2010

Deadline for reply: 21.10.2010