PARIS (MNI) – The U.S. Federal Reserve is not aiming to drive down
the dollar and it is too simple to see the euro as a victim of currency
wars, ECB Governing Council member Christian Noyer said in an interview
published Thursday.
With an eye on the G20 summit in Korea, the governor of the Bank of
France argued for cooperation among the key economic actors on forex
issues and welcomed China’s measures to strengthen domestic demand.
“The Federal Reserve is certainly not engaged in a policy of
weakening the dollar,” Noyer told the French business daily Les Echos.
“There is an accord within the G7 for the greatest stability
possible on foreign exchange markets: exchange rates should reflect the
fundamental situation of economies and excessive volatility and
disorderly movements must be avoided,” he reminded.
The idea that the euro is a victim of ongoing monetary disorder “is
a simplistic vision,” Noyer cautioned, noting that currencies of other
large industrialized countries and some large emerging economies in
Asia and Latin America are also appreciating.
“The evolution of the euro is an important factor that influences
not only growth in the medium term but also — and more rapidly —
inflation,” Noyer said. “Since its start, the European Central Bank has
taken account of this in its analysis of the risks to price stability in
the Eurozone. The same is true of all the major monetary zones.”
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