Forex controls hurt countries that play by rules-Bank of Canada

Tue Apr 2, 2013 12:31pm EDT
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OTTAWA, April 2 (Reuters) - Small, open economies with flexible currencies feel the pressure from other economies that break the global rules to intervene in foreign exchange markets, a senior Bank of Canada official said on Tuesday.

In a slide show presentation posted on the central bank's website, Deputy Governor John Murray said exchange rate adjustment by large, emerging economies is an important part of the solution to global imbalances and delays in making these adjustments hurt countries like Canada, which has a non-interventionist policy.

"Pressures from those who break the rules are displaced onto more flexible currencies," the presentation said. One slide showed a chart showing the real effective exchange rates of China, Brazil and Canada.