Vol. 5 Num 215 Fri. December 31, 2004  

‘Persistent dollar weakness a concern’

Persistent US dollar weakness is a concern and stability in foreign exchange markets requires a correction of global economic imbalances, German Chancellor Gerhard Schroeder was quoted as saying on Monday.

"A stabilisation of foreign exchange markets demands above all a balancing of existing global economic imbalances, the causes of which do not lie in Europe," Schroeder said in a guest article to appear in Thursday's edition of German newspaper Handelsblatt.

In a preview of the article, Schroeder also said: "All in all the prospects for a good start for the German economy in the new year are very promising. However, strong fluctuations in oil prices and persistent dollar weakness are causes for concern."

What to do about these two issues wold be discussed at the next meeting of leaders from the Group of Eight richest nations at Gleneagles Hotel, Scotland in early July, he added.