BERLIN, Oct 12 (Reuters) - The head of the German Chamber of Industry and Commerce (DIHK) President Heinrich Driftmann, was quoted on Tuesday as saying he was concerned about escalating foreign exchange tensions.
Driftmann said countries risk creating trade barriers by attemping to influence foreign exchange markets.
"One should not take lightly the current attempts by countries to create a short-term advantage for themselves through a soft currency," Driftmann said in an interview with Manager magazine.
"Playing with exchange rates bears the danger of backlash, such as trade barriers," he said.
Germany's economy -- Europe's largest -- is traditionally driven by its exports. Foreign trade helped it emerge quickly from its deepest post-war recession last year to reach stellar growth in the second quarter this year.
The United States and China are trading blame for the fundamental problem in the world economy, the slow pace of growth in rich countries and the strong growth in China and other exporting nations.
"At the end, there are only losers," Driftmann said. "That makes coordination on an international level -- such as at the International Monetary Fund -- all the more important."
G20 nations are under pressure to resolve disputes about foreign exchange policy or risk a new crisis for the world economy as protectionism takes hold.
After a weekend IMF meeting failed to make any headway, Japan said it would wade into the foreign exchange market anew if need be to weaken the yen and Beijing once again talked down the prospects of a faster rise in the yuan.
G20 finance ministers and central bank governors meet in South Korea from Oct. 22 with a leaders summit convening on Nov. 11.
The current euro rate was still manageable for most domestic exporters, Driftmann said, adding a euro rate of 1.50 dollars would up the pressure alarmingly on profitability and margins. (Reporting by Annika Breidthardt, editing by Stephen Nisbet)