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Gold/Mining/Energy : Euro Impact on Gold, USD ... -- Ignore unavailable to you. Want to Upgrade?

To: banco$ who wrote (93)	12/1/1998 11:47:00 PM
From: banco$	Respond to of 289

EU wants to avoid major FX misalignments: BRUSSELS, Dec 1 (Reuters) - Major misalignments between the euro, the U.S. dollar and the Japanese yen should be avoided by closer macroeconomic policy coordination, European Union finance ministers agreed on Tuesday in a report to be presented to EU leaders later this month. ''It is important to minimise, in so far as possible, and through the pursuit of stability-oriented policies, excessive volatility and major misalignments among major currencies,'' the report on ''Strengthening the International Financial System'' said. A copy of the report was obtained by Reuters. ''It is therefore important to maintain, or to enhance if possible, macro-economic cooperation with our main partners, and consider how this should take account of the new context created by the introduction of the euro.'' The euro single currency will be launched by 11 EU countries on January 1. The report made no mention of adopting ''target zones'' for the euro against major currencies, as has been suggested by German Finance Minister Oskar Lafontaine. The report said the euro could ''constitute a reference'' for some emerging market countries, but that those countries' foreign exchange regimes must be tailored according to their stage of development. It said the opening of capital markets in emerging economies ''must be carried out in a careful and well sequenced manner'' accompanied by robust rules on supervision of financial markets and overseen by the World Bank and International Monetary Fund.