Finance ministers from the Group of Seven industrialised countries yesterday confirmed that more discussions had been held on a system of currency regimes that could be used to limit volatility in emerging markets. With Asia and Latin America still gripped by bouts of market turmoil, and the lack of economic progress in Russia continuing to threaten stability in many eastern European countries, the G7 believes a temporary measure to control currency movements might prove a tonic for curing economic malaise. The official G7 communique urged emerging market countries, particularly in Latin America, to pursue appropriate 'institutional, structural, macroeconomic and exchange-rate policies, and, where necessary, to reinforce existing economic programmes, as the best way to respond to financial market pressure', but officials agreed more concrete discussions were also taking place. 'The key to stability is fundamental reform,' said United States Treasury Secretary Robert Rubin. 'But developing countries need to ask what kind of exchange rates you want.' Mr Rubin said he still believed the pursuit of sound economic policies remained the ultimate answer to sustainable recovery and growth, but officials accept the sensitive stage most developing countries face at the moment, requires more complex action. The danger that industrial countries themselves could seriously succumb to the economic turmoil seen in much of the developing world, has meant that recovery in emerging markets is in danger of remaining subdued until there is a more stable outlook for developed nations. Some G7 countries believe that while they are implementing policies to ensure continued sustainable growth in their own economies, one way of helping the emerging countries to recover is by promoting stability through managed exchange rates. The final G7 statement said in particular they were concerned about the accumulation of arrears on debts due by Russia, while also urging the Brazilian authorities to continue with their reform efforts, and take note of social needs.