|
Greenspan: Euro Gains As Reserve Choice
By AP
Report: Former Fed Boss Says Euro Could Replace U.S. Dollar As
Favored Reserve Currency
09/17/07 -- - FRANKFURT, Germany (AP) -- Former U.S. Federal
Reserve chairman Alan Greenspan said it is possible that the euro could replace the U.S. dollar as the reserve currency of
choice.
According to an advance copy of an interview to be published in
Thursday's edition of the German magazine Stern, Greenspan said
that the dollar is still slightly ahead in its use as a reserve
currency, but added that "it doesn't have all that much of an
advantage" anymore.
The euro has been soaring against the U.S. currency in recent
weeks, hitting all-time high of $1.3927 last week as the dollar
has fallen on turbulent market conditions stemming from the
ongoing U.S. subprime crisis. The Fed meets this week and is
expected to lower its benchmark interest rate from the current
5.25 percent.
Greenspan said that at the end of 2006, some 25 percent of all
currency reserves held by central banks were held in euros,
compared to 66 percent for the U.S. dollar.
In terms of being used as a payment for cross-border
transactions, the euro is trailing the dollar only slightly with
39 percent to 43 percent.
Greenspan said the European Central Bank has become "a serious
factor in the global economy."
He said the increased usage of the euro as a reserve currency
has led to a lowering of interest rates in the euro zone, which
has "without any doubt contributed to the current economic
growth."
http://www.stern.de
Click
on "comments" below to
read or post comments
Comment
Guidelines
Be succinct, constructive and
relevant to the story.
We
encourage engaging, diverse and
meaningful commentary. Do not
include personal information such
as names, addresses, phone
numbers and emails. Comments
falling outside our guidelines
– those including personal
attacks and profanity – are
not permitted.
See our complete
Comment
Policy and
use
this link to notify us if you
have concerns about a comment.
We’ll promptly review and
remove any inappropriate
postings.
Send Page To a Friend
In accordance
with Title 17 U.S.C. Section 107, this material
is distributed without profit to those who have
expressed a prior interest in receiving the
included information for research and educational
purposes. Information Clearing House has no
affiliation whatsoever with the originator of
this article nor is Information ClearingHouse
endorsed or sponsored by the originator.)
|
