Geithner committed to strong dollar as reserve currency
AFP - Monday, July 13
NEW YORK (AFP) - - US Treasury Secretary Timothy Geithner said Sunday he is not concerned that the US dollar is weakening as a reserve currency, despite recent criticisms from China, Russia and France.
"I actually don't worry about that," Geithner said in an interview on CNN.
"In part because if you just look at the response of the world as we go through this period of time, when people are most concerned about risk, generally they want to be investing in the most liquid, safest market," he said.
"You've seen that pattern consistently over the period of time and we want to make sure we can sustain that basic response," the Treasury secretary said, adding he would continue to work towards keeping the dollar strong.
"A strong dollar is in the interest of the United States," Geithner said, "and our commitment is the world, and of course, the American people, is to make sure we'll put in place the policies that can sustain confidence in this economy and this financial system."
Geithner's comments come as France joined a chorus of other countries critical of the dollar's dominance over other currencies, with President Nicholas Sarkozy saying Thursday that a "multipolar world must be a multicurrency world."
Sarkozy is the first European leader to join with China and Russia, who have called for a new international reserve currency similar to the Special Drawing Rights -- an artificial currency used by the International Monetary Fund.
Chinese State Counselor Dai Bingguo, speaking at this week's G8 summit, said the international community should "promote an international monetary system that is more diverse and reasonable."
But Geithner emphasized that China must play a role in the rebalancing of the global economy by pushing domestic consumption.
Previewing an economic and strategic dialogue with China scheduled to take place in two weeks time in Washington, Geithner said the United States would call for "a common framework."
So, when "we raise our savings in the United States, which is necessary, and it is already happening in a significant scale, that the world as a whole adjust to that new reality and put themselves on a path where you're going to see stronger domestic demand growth in those countries," he said.
AFP - Monday, July 13
NEW YORK (AFP) - - US Treasury Secretary Timothy Geithner said Sunday he is not concerned that the US dollar is weakening as a reserve currency, despite recent criticisms from China, Russia and France.
"I actually don't worry about that," Geithner said in an interview on CNN.
"In part because if you just look at the response of the world as we go through this period of time, when people are most concerned about risk, generally they want to be investing in the most liquid, safest market," he said.
"You've seen that pattern consistently over the period of time and we want to make sure we can sustain that basic response," the Treasury secretary said, adding he would continue to work towards keeping the dollar strong.
"A strong dollar is in the interest of the United States," Geithner said, "and our commitment is the world, and of course, the American people, is to make sure we'll put in place the policies that can sustain confidence in this economy and this financial system."
Geithner's comments come as France joined a chorus of other countries critical of the dollar's dominance over other currencies, with President Nicholas Sarkozy saying Thursday that a "multipolar world must be a multicurrency world."
Sarkozy is the first European leader to join with China and Russia, who have called for a new international reserve currency similar to the Special Drawing Rights -- an artificial currency used by the International Monetary Fund.
Chinese State Counselor Dai Bingguo, speaking at this week's G8 summit, said the international community should "promote an international monetary system that is more diverse and reasonable."
But Geithner emphasized that China must play a role in the rebalancing of the global economy by pushing domestic consumption.
Previewing an economic and strategic dialogue with China scheduled to take place in two weeks time in Washington, Geithner said the United States would call for "a common framework."
So, when "we raise our savings in the United States, which is necessary, and it is already happening in a significant scale, that the world as a whole adjust to that new reality and put themselves on a path where you're going to see stronger domestic demand growth in those countries," he said.
