April 14, 2007	Saturday	Rabi-ul-Awwal 25, 1428

WASHINGTON, April 13: Global finance chiefs were to mount a fresh bid on Friday to narrow gaps on economic and currency policy at talks clouded by a growing scandal looming over World Bank President Paul Wolfowitz.

Discord over currency rates and hedge-fund regulation has deepened ahead of the latest meeting here of Group of Seven (G7) finance ministers from Britain, Canada, France, Germany, Italy, Japan and the US.

In the face of European unease over a weakening yen, Japanese Finance Minister Koji Omi said ahead of a meeting with US Treasury Secretary Henry Paulson: “I wouldn't be surprised if there were some open discussion of the yen, as usual.” The ministers, joined by their central bankers, were later to convene ahead of weekend meetings of policymakers from the IMFand World Bank.

Heading into the weekend's high-level talks, IMF Managing Director Rodrigo Rato said the world economy was poised to extend “one of the longest sustained periods of growth in the modern era.” Despite a slowdown in the United States, a slight deceleration in Europe, and a sharp global stockmarket correction in February, G7 ministers can take heart from a generally rosy outlook for global growth as Japan perks up and China leads the charge for developing economies.

But within the group there remain unresolved differences on currency volatility and proposed measures to regulate the trillion-dollar hedge fund industry.

A weakening Japanese yen is causing consternation in European capitals, where officials fear the trend could penalise eurozone exports, making them more expensive and less competitive, and thereby jeopardiae a nascent recovery in the 13-nation zone.—AFP