From Reuters:
Brazil's Finance Minister Guido Mantega will propose at the Group of 20 nations meeting next month that the International Monetary Fund create an index measuring currency manipulation, local media reported on Thursday.
The idea is to identify who is keeping their currency artificially low to boost exports, Mantega said, lending support to eventual actions against illegal subsidies at the World Trade Organization.
"The IMF would have to come up with a method to measure which currencies reflect the structural situation of their countries, which are floating currencies, and which ones are forcing their hand," Mantega told O Globo newspaper in an interview.
The next step would be to make a deal to reduce such intervention, and if that didn't happen the manipulation could eventually be considered a commercial subsidy, Mantega said.
"In fact, the WTO considers currency manipulation to be a commercial subsidy that has to be avoided and could result in sanctions", he said.
It will be interesting to see if this proposal goes anywhere.
