No currency deal expected at world economy meet: Canada

WASHINGTON: Economic powers gathering in Washington are unlikely to overcome a dispute that has sparked fears of a currency war, Canada's Finance Minister Jim Flaherty said on Friday.

Finance ministers and central bankers from the IMF's 187 member states met in the US capital hoping to ease a fierce debate between the rich and developing world over currency policies which are seen as skewing trade.

Anger is focused on China, which is accused of not moving quickly enough to let its currency rise to a fair market value, harming businesses in the United States and elsewhere.

"I certainly don't anticipate there is going to be any unanimous agreement in Washington this weekend about currencies, inflexible currencies and how much they should move," Flaherty said.

But he indicated countries would continue to ramp up the pressure on Beijing.

"I do think that there will be a clear resolution on behalf of those countries that have currencies that trade freely... that there are consequences that are bad for world economic recovery, for a world economic recovery that is fragile, by other countries maintaining relative inflexibility in their currencies."

China has flatly rejected suggestions of rapid reform, fearing it could harm the country's vital exporters.

But Flaherty urged action, while issuing a thinly veiled warning about what would happen if China failed to act.

Flaherty said it was "very important" to avoid actions which "distort trading relationships and invite retaliation."