Eichel: US, Europe, Asia need to coordinate to resolve forex problem -
Friday, November 19, 2004 9:41:09 AM
afxpress.com
(updates with radio interview comment on forex; recasts headline, lead)
FRANKFURT (AFX) - German Finance Minister Hans Eichel said the world's three main trading blocks need to coordinate efforts behind the scenes to resolve currency imbalances that have seen the dollar sink against the euro and the yen
"Within the trioka - i.e. Japan, America and Europe - we'll have to sit down together and try to reach a common solution," Eichel told DeutschlandRadio Berlin in an interview ahead of this weekend's meeting of G20 finance ministers and central bankers
"But that is a matter that is not for the public. Exchange rates are not discussed in public." Earlier, in an interview with the Frankfurter Allgemeine Zeitung, Eichel urged further moves towards greater exchange rate flexibility among the west's key Asian trading partners
"In order to make the adjustment process easier, greater exchange rate flexibility is generally desirable," he told the newspaper, when asked about the fixed exchange rate system in some Asian countries
"In this connection, I welcome China's move to create the conditions for more exchange rate flexibility, particularly through reforms in its financial sector." The G20 has a "joint interest in stable oil prices", Eichel also said, adding that he expects the group to "jointly adopt this view"
[wow who woulda thunk. BTW do they me stable up here or stable at $30? mish]
Meanwhile, a cheaper dollar "means of course that oil is not as expensive for us as it appears to be on the world market," Eichel told DeutschlandRadio Berlin
"The snag, on the other hand, is that it's bad for exporters," the German finance minister added, while noting that Germany exports most of its goods to partner countries in the EU rather than to the dollar region. newsdesk@afxnews.com mog/jms For more information and to contact AFX: www.afxnews.com and www.afxpress.com |
