Germany to warn against intervention in favour of U.S. dollar
Thomson Financial
Monday, April 7, 2008
The German finance ministry plans to warn against intervention in favour of the U.S. dollar at the forthcoming G7 meeting, Der Spiegel reported, citing an internal draft ahead of the talks.
The ministry's experts believe verbal interventions that talk up a currency are inefficient, the magazine said.
It said interventions on the international capital markets to back the U.S. dollar could not be financed if they are to reach a volume that has an impact. The ministry also sees a cut in interest rates in the euro zone as "highly unlikely" given the current high levels of inflation in the region.
The G7's finance ministers and central bank presidents are set to meet at the end of this week in Washington.
