France Aims to Address Currency Market Volatility at G7 Talks

France's G7 Presidency and Currency Issues

By Leigh Thomas

PARIS, Feb 3 (Reuters) - France will put currency market volatility on the agenda of Group of Seven finance talks if needed, its finance minister said on Tuesday, as Paris uses its G7 presidency to push for action on what it calls worsening global economic imbalances.

The U.S. dollar fell to a more than 4-1/2-year low against the euro last week, prompting concern among policymakers, while China's renminbi has been weak against other major currencies for years, giving its exports a competitive edge.

Concerns Over Currency Fluctuations

"If necessary, I will of course put the issue of foreign exchange market volatility on the agenda," Roland Lescure told journalists as he presented his G7 priorities.

Once the pre-eminent forum for tackling global economic issues among industrialised nations, the G7 is struggling to remain relevant, especially as the Trump administration pursues unilateral policies that have unsettled allies.

Lescure, who will host G7 finance ministers and central bank governors in Paris on May 18-19, said France wanted the group to focus on imbalances he described as driven by credit-fuelled over-consumption in the U.S., under-investment in Europe and export-led growth in China.

Addressing Economic Imbalances

"If we continue at this pace without dialogue, without agreeing corrective measures, it will end badly, whether it's an economic crisis, financial crisis, political crisis," he added.

He said G7 finance ministers should agree a "catalogue" of joint tools to address imbalances, potentially targeting specific sectors such as rare earths.

U.S. Treasury Secretary Scott Bessent convened a meeting last month with counterparts from G7 and other partner countries to discuss ways to reduce reliance on China for rare earths, including setting a price floor and forming new partnerships to build alternative supplies.

Reviving International Taxation Talks

Lescure said he also wanted to use France's G7 presidency to revive talks on coordinating international taxation of multinational companies, an area that has previously drawn criticism from the Trump administration.

(Reporting by Leigh Thomas. Editing by Richard Lough and Mark Potter)