"We want peace not war..."

These were the words of French Finance Minister, Christine Legarde as the International Monetary Fund's (IMF) annual conference took off in Washington.

The issue they are all talking about is "currency wars"and specifically the efforts to boost exports by embracing weaker currencies. Many have argued this will lead to protectionism and trade imbalances when economic growth is at its most vulnerable.

The Chinese "undervalued" yuan was at the forefront of the argument as foreign officials have called for the currency's speedy appreciation. China has said it wants to avoid "shock therapy" and the yuan will have a "gradual" rise.

However IMF Managing Director, Dominique Strauss-Kahn said using currencies as a means to dictate economic policy would lead to "very bad situations."

The fear amidst it all is a relapse into the recession....