18
June
ECB's Constancio does not see sharp dollar slump
18 June 2009 Reuters
European Central Bank Governing Council member Vitor Constancio said on Wednesday a big fall in the dollar would cause large problems for the world economy, adding that he does not expect a sharp fall in the U.S. currency.
"A large depreciation of the dollar would cause enormous problems for the world economy," he told a banking conference. "This won't happen because, in the last analysis, whoever holds dollar assets has no interest in creating a collapse."
He added that some dollar depreciation is desirable, accompanied by greater saving in the United States. At the same time he said surplus countries need to boost domestic consumption.
"All this has to be done gradually to resolve global imbalances," he said.
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLSB00021320090617
