The euro has indeed strengthened and the yen has weakened recently, but due to the right political measures that have been taken in Europe, and monetary easing in Japan, Lagarde said at a meeting with Russian President Vladimir Putin.
Lagarde said the IMF welcomed the steps the governments of those countries have taken. She said what is happening to these exchange rates now reflects the true value of the currencies, but that it was necessary to monitor what is happening closely.
She said developed countries must not pursue excessively weak monetary policies. As for emerging economies, they should bear in mind that the high rates of growth seen pre-crisis and in some countries during the recovery period will not be robust if they are not backed by policies capable of removing structural bottlenecks.