US Rejects Idea on Currency Zones
The United States remained strongly opposed to the idea of establishing greater links between the world's major currencies, Treasury Secretary Robert Rubin said on Wednesday.
Despite renewed pressure from Europe to more closely link the dollar with the Japanese yen and Europe's new euro, Rubin said he believed such proposals would likely at some point put US domestic economic interests at odds with maintaining some type of fixed exchange rates.
Officials in France, Germany and Japan have endorsed searching for ways to more closely link the currencies of the United States, Japan and Europe as a way to reduce the extreme volatility in exchange markets witnessed in recent years.
But Rubin said such an idea would ultimately be doomed to create even more speculative turbulence.
WorldNews 1999-02-19 Page3
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