GENEVA - IT IS an irresponsible exaggeration to say the world is in a currency war, even if countries have their differences over adjustment policies, the head of the Swiss National Bank said on Saturday.

Among a series of tensions over exchange rates The United States and other countries have been calling on China to revalue, while China has criticised the US easy monetary policy for weakening the dollar and flooding the world with cheap assets.

'We are not in a currency war. After all, we're talking to each other and you dont't do that in a war,' SNB Chairman Philipp Hildebrand said in an interview published on Saturday on the website of the German daily Frankfurter Allgemeine Zeitung

Mr Hildebrand agreed that adjustments in exchange rates could be one of the measures needed to get out of the current difficult situation for the global economy. But a significant appreciation of the Chinese yuan could not occur overnight, he said.

In any case a sudden such move would hurt the Chinese economy's growth prospects which would not be in the interests of other countries, including the United States.

Commenting on criticism by some countries of the easy monetary policy of the Fed, which is widely expected next week to embark on another round of quantitative easing - printing money to buy bonds and drive down interest rates - Mr Hildebrand said he was confident the Fed would take into account the global impact of its actions.

Currency war an 'exaggeration'