BRUSSELS (MNI) – European Central Bank President Jean-Claude
Trichet on Monday reiterated his warning that disorderly exchange rate
movements have negative consequences for the global economy and said he
strongly supported the U.S. authorities’ plan for a credible dollar.
Trichet called for “extreme prudence” when it comes to exchange
rates and said some global exchange rate regimes are “not sufficiently
flexible.”
The ECB President said there were two strands to current foreign
exchange rate issues, the first was a “strong” and “credible” dollar and
the second was moving the emerging economies towards a more flexible
policy.
“The challenges lying ahead of us are manifold,” Trichet said.
“More than ever” this is no time for complacency.”
He again criticised a proposal for the enforcement of EU rules on
debt and deficit and called on lawmakers in the European Parliament to
strengthen them.
Trichet said the ECB had delivered on its mandate of price
stability and would continue to do so.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: M$$EC$,M$X$$$,M$$CR$,MGX$$$,M$$FX$]
