Exchange rates may be discussed at G8

Exchange rates might well be one of the topics up for discussion when Group of Eight (G8) leaders meet in Gleneagles, Scotland later this week, a top German government official said on Monday.

"It may well be that (exchange rates) will be discussed," said Bernd Pfaffenbach, state secretary in the economy ministry and Germany's so-called "sherpa" for the G8 summit.

"It's clearly a topic that is being closely watched by some," he added.

Government leaders from Britain, Canada, France, Germany, Italy, Japan, Russia and the United States are meeting in Gleneagles July 6-8 to discuss a broad palette of topics, including Third World poverty and aid to developing countries and global warming.

At Germany's request, global economic growth and petrol prices would also be on the agenda, Pfaffenbach said.

"It was Germany's initiative" to discuss those matters, he said, adding that there was widespread support for such a debate and that the issues would feature in the final declaration.

With regard to oil prices, which soared to new records last week, market transparency and price-setting would be discussed, Pfaffenbach said.