WASHINGTON, Oct 27: The International Monetary Fund hopes for a successful conclusion of world trade talks on agriculture, which would bring “tremendously positive” effects for the global economy and poor nations, an IMF spokesman said on Thursday.
“We look forward to a (WTO) Hong Kong meeting that is successful,” IMF spokesman Thomas Dawson said, declining to comment on the details of the negotiations.
Mr Dawson also told a regular press briefing the IMF was continuing an active dialogue with Argentina and declined to comment on the results of a weekend election there. He said the precise timing and next steps toward an IMF programme for the country were up to the government to decide.
In response to a question about high oil prices, Mr Dawson repeated the IMF’s view that global economic growth would likely remain strong into next year, but said some countries were feeling more pinched than others.
“Obviously the oil price has a greater adverse effect on some countries, and we are mindful of that,” he said.
Mr Dawson noted that China was taking steps to slow credit and investment growth, and said reforming the Chinese banking system should be a priority.
He also reiterated the IMF’s position on China’s yuan currency.
“Greater exchange rate flexibility is in China’s interest, it is also in the interest of the rest of the world,” he said.
Regarding Iraq, Mr Dawson said the IMF is making “good progress” on a new standby agreement, which could be reached by the end of 2005.
The IMF executive board is also expected to ratify a G8 debt forgiveness deal for poor nations this calendar year, he added.
