World economic recovery at risk because the currency market manipulation and due to increased global trade imbalances, the Governor of the Bank of Italy (Bank of Italy), Mario Draghi, said Thursday. "Intervention in the forex market is used by certain countries to support export. Imbalance in international payments is rising," Draghi said.
"The currency exchange rate which is determined by the market is feeling the pressure gap between (a) policy and speculative due to tension. The recovery of the world at risk," Draghi said on the show 'World Savings Day' (World Savings Day) organized by the Italian savings banks and associations .
"There is no other choice but to ensure greater coordination between the economic policies the main countries," he said, emphasizing that the Group of 20 (G20) developing countries and developed countries have made this commitment. G20 countries agreed on Saturday to support global economic growth by working to limit global imbalances and to refrain from currency market intervention.
The meeting comes amid growing fears that the currency war will see the current attempt to increase exports by making them cheaper to overseas buyers at risk of 'beggar-thy-neighbor' (economic policies that create a chaotic neighboring countries).
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