-- This story has no dateline to protect the anonymity of the source.
Jan 21 (Reuters) - The fall in value of the British pound is a problem for mainland Europe and will be added to regular talks on exchange rate issues when G7 finance ministers meet in February, a G7 source said on Wednesday.
Speaking on condition of anonymity, the source also said that the situation on currency markets in general had not reached crisis levels and that there was no need yet for verbal intervention to try to influence exchange rates.
"The pound is depreciating. It is obviously a problem for Europe," said the source, who has first hand knowledge of preparations for the meeting.
"It's an economic problem. For the moment this does not affect us financially."
Asked specifically about the G7 talks that are due to take place on Feb 14 in Rome, the source said:
"Normally we talk about the dollar, yen, and the euro but this time we'll be talking about the pound as well."
In the past year, sterling has lost around 30 percent versus the dollar
Such depreciation gives British exporters an edge in price competition with rivals in world markets.
"We need to talk with the UK about the depreciation of the pound, which is a problem for us, and with Japan about constant rumours of (Japanese) intervention. The idea is to try not to make the crisis worse through exchange rates," the source said.
Speaking of exchange rates in general, the G7 source said:
"If you do verbal intervention it's because you think there is a crisis situation. We're not at that point yet."
"Our concern is to avoid strong fluctuations and to maintain calm on the currency market in a time of (financial and economic) crisis," said the source.
"The biggest concern is that there is an increase in competitive devaluations, in China, but also temptations in other emerging markets, the Asian countries in particular," the source said.
The Europeans were also keen to talk to the new U.S. administration, said the source.
"The idea is to avoid too much currency fluctuation. The idea is also to avoid protectionism. We need to talk to the new U.S. authorities," the source said.
Asked whether the option of direct central bank intervention to influence exchange rates would de discussed at the Rome G7 talks, the source said:
"If there are interventions, they must not be all the time. Everything is always possible. There is no precise plan for the euro zone for this G7, but we live in a world which is very troubled so we're not going to say we're not going to do this or that."
"For the moment currency rates have been volatile. But in spite of everything there has not been a totally outrageous trend. There is no reason to want to manipulate the markets at the moment.
"If there were new difficulties because there was a very big movement, which put in jeopardy financial stability and if our partners wanted it, we could verbally intervene."
The same G7 source said volatility in exchange rate markets was an issue of greater concern at the moment than one or other exchange rate trend per se.