By Johanna Treeck
WASHINGTON (MNI) – The European Central Bank opposes any kind of
currency war and is confident the international community can work
together constructively to address recent exchange rate volatility, ECB
President Jean-Claude Trichet said Saturday.
“I don’t qualify the objective situation as being reflected in
these words [currency war]. It is more a question of semantics, I am
convinced that we will continue to cooperate in a confident manner,”
Trichet said during a press conference at the sidelines of the IMF and
World Bank meeting.
Trichet reminded that emerging economies — including China —
have committed to “enhance exchange rate flexibility” reflecting that
there are shared objectives on an international level.
He warned against “negative implications” of abrupt currency
developments.
“Excess volatility and disorderly movements in the exchange rate
have adverse implications for the stability of the financial system.
Exchange rates must reflect economic fundamentals,” Trichet said.
“We are very, very hostile to any kind of currency war,” he
asserted.
Asked whether the U.S. Federal Reserve had confirmed to him during
the meetings that a strong dollar remains in the interest of the United
States, Trichet said that “the U.S. authorities to my knowledge are in
favor of a strong dollar. I always appreciate this reference. It means a
strong dollar against other major floating currencies.”
–Frankfurt bureau tel.: +49-69-720142. Email: jtreeck@marketnews.com
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$$EC$,M$X$$$,M$$CR$,MGX$$$,MFX$$$$]
