PARIS (Thomson Financial) - French President Nicolas Sarkozy said the euro's rise above 1.40 usd is a problem for the competitiveness of the euro zone.
'I am not saying that it is dangerous...but of course, a dollar at 1.40 to the euro is a problem for the competitiveness of our economies,' he said in an interview with the International Herald Tribune. A transcript of the interview was published on the newspaper's website.
Sarkozy said he 'appreciated' the policy of the US Federal Reserve, which last week cut interest rates in response to concerns about the economic impact of the recent turmoil in financial markets.
'I am saying that I appreciate the policy of the Federal Reserve Bank which clearly sees that priority has to be given to entrepreneurs rather than speculators,' he said.
Sarkozy has criticised the European Central Bank for not paying enough attention to economic growth.
He said the recent problems in credit markets showed a need for changes in the way the financial system is regulated. US Treasury Secretary Henry Paulson agreed on this when they met in Paris last week, he said.
'I'm in favour of liberalism, of competition, of globalisation, but I think it's time now to set new rules: more transparency, more ethics in financial capitalism,' he said.
'I didn't much appreciate the way the credit ratings agencies rated savings plans 'triple A' one day and 'triple B' the next. This is not responsible, we need new rules and, when I had talks with Mr Paulson, he agreed that regulating financial capitalism is imperative for every country in the world,' he said.
Source: forexfactory.com
Tags: forex,foreigne xchange,currency,euro,usd
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