Bank of England chief issues ‘currency war’ warning

Thai bank employee counts bundles of Thai baht banknote at Krung Thai bank in Bangkok on October 18, 2010. – AFP Photo

LONDON: Bank of England governor Mervyn King has warned that tensions between countries over their respective exchange rates could degenerate into trade protectionism amid talk of a potential 'currency war'.

Ahead of a meeting of G20 finance ministers and central bankers in South Korea this weekend, King told British business leaders late on Tuesday that “the need to act in the collective interest has yet to be recognised”.