WORLD
IMF Lagarde : Europe Not Out Of The Woods - Report
Europe is not completely out of the financial crisis, despite having a solid crisis response toolkit, the head of the International Monetary Fund says in an interview with French newspaper published Tuesday.
"Europe, which was at the epicenter of the crisis, has strengthened itself in the monetary and financial domain, as well as in terms of governance thanks to an impressive arsenal," Christine Lagarde is reported saying in an interview with French daily paper Le Monde.
But Europe is "not out of the woods," she adds, saying the continent must show renewed determination in applying multi-year budget rules.
Asked about the health of the banking sector, Lagarde says there is still a lot of progress to be made in writing norms into national laws and coordinating on an international level.
Lagarde, a former French finance minister, also says the People`s Bank of China`s announcement April 13 of the widening of the renminbi`s trading band against the U.S. dollar is "perfect timing."
"This decision comes a few days ahead of the meeting of finance ministers from the Group of 20 leading economies in Washington, where the Chinese exchange rate will inevitably be a question," she says.
In the Le Monde interview, Lagarde reiterates her call for an increase in IMF resources of at least EUR400 billion and says the contribution of the U.S. could take different forms to increase liquidity, such as currency swaps between the Federal Reserve and the European Central Bank.