	volcker reaffirms g negotiating process washington march federal reserve board chairman paul volcker urged congress to allow the government to continue its flexible negotiations on exchange rates through procedures such as the recent paris meeting of industrialized countries in a letter to house banking committee chairman fernand st germain volcker said he opposed legislation to formalize international negotiations on exchange rates and to require treasury secretary james baker to disclose plans for currency intervention volcker s letter was written march in advance of the committee s march approval of the proposed legislation the fundamental policy objectives of the united states can best be implemented in a more flexible framework such as through the recent meeting in paris of finance ministers and central bank governors volcker said he recommended congress not lock the administration into formal procedures for international exchange rate negotiations to achieve specific exchange rate goals the achievement of a sustainable pattern of u s international transactions and more stability in exchange rates are ones with which i remain sympathetic he said the banking committee s bill directs the administration to to start negotiations to reach a competitive exchange rate for the u s dollar runs the risk of build up potentially destabilizing market expectations volcker said a requirement that baker disclose his intervention policy could reduce the usefulness of intervention as a tool to deal with exchange rate volatility volcker added baker has also opposed the legislation which will be wrapped into a major trade bill for consideration in the house in late april the senate will consider its version of the trade bill in may reuter 
