–Reiterates Usual G20 Mantra On FX – Disorderly FX Moves Adverse
–Shares US View On Interest In A Strong Dollar
–Very Cautious, Very Prudent On Growth Outlook
LONDON (MNI) – Exchange rates will be discussed when central bank
governors the G20 economies meet in Washington in a few days time,
European Central Bank President Jean-Claude Trichet said today.
Pressed on the issue of ‘currency wars’, Trichet reiterated the
traditional G20 oposition on exchange rates:
“I would only say that, more than ever, I think that exchange rates
should reflect economic fundamentals. Excess volatility and disorderly
movements in exchange rates have adverse results for economic and
financial stability and, we will have an occassion to exchange views on
that with, in particular the authorities, the central bank governors and
the ministers of finance of the major floating currencies in Washington
in a few half days. I share the view of the US authorities when they
reiterate that they trust that a strong dollar is in the interest of the
United States of America.”
Trichet made the comments during the course of today’s press
conference following the monthly meeting of the ECB Governing Council.
The ECB president underlined his confidence that the euro zone is
in the process of an economic recovery even but stressed that this would
be moderate and insisted he remained cautious on the outlook for euro
zone growth:
“It is confirmed by all international institutions. The IMF itself
is revising up growth in Europe, it’s a pure observation of reality, but
we don’t declare victory, we don’t say that now it’s over and that we’re
in active and rapid growth, we consider that we have to remain very
cautious and very prudent. We don’t consider the profile of growth next
year is changed at the present point, we remain prudent. We said this
month, that we saw the growth projection being tilted slightly on the
downside.”
–London newsroom: 0044-207-634-1624: email: ukeditorial@marketnews.com
[TOPICS: MT$$$$,M$$EC$,M$X$$$]