MoF's Sakakibara says 'dollar's hegemony' declining since euro launch
TOKYO (AFX) - Finance Vice Minister for international affairs Eisuke Sakakibara said the dollar's dominance in the international currency system is gradually declining following the debut of the euro.
He was speaking at a luncheon meeting with journalists.
"The dollar's hegemony is declining in the wake of the unification of Europe and the potential anti-American sentiment in various parts of the world that has arisen in recent years," Sakakibara said.
As a result, he said he now doubts the maintenance of the dollar's dominance in the 21st century.
"We have had a de-facto U.S. dollar (dependent) system during the last two decades or so," Sakakibara said.
"My answer ... tends to be on the negative" to the question whether the dollar will maintain its dominant status as global capitalism becomes more sophisticated, he added.
Sakibara predicted in an interview with the Le Monde newspaper late December that the euro will be a "great success" even though many outstanding matters of adjustment, notably tax issues, had yet to be settled.
Sakakibara, however, said the government of Japan has "no immediate plans" of reorganizing its foreign exchange reserve portfolio in favor of the euro. He did not elaborate.
Separately, Sakakibara said an "excessively weak yen is not desirable, and (an) excessively strong yen is equally not desirable."
Sakakibara, however, declined to discuss whether or not the yen's movement has been excessive recently.
"I cannot comment on the government of Japan's stance towards the foreign exchange market" on behalf of the government.
As well, Sakakibara said U.S. share prices are "overvalued," adding that he shares U.S. Fed chairman Alan Greenspan's view that U.S. equity market rally may not be sustainable.
/gh/jfr
1999-01-22 07:11:06
|
