Central Bank Not Ready
To Change Foreign
Reserve in Face of Weak
US Dollar
Notwithstanding the weak
U.S. dollar against
other currencies, the
Banco Central de Costa
Rica (BCCR) - Central
Bank - refuses to change
its foreign reserves to
another currency, such
as the Euro or Yen, for
example.
That is the word from
the general manager of
the Central Bank, Roy
González, adding that
the drop in the value of
the US currency has
given him some thought
to a change, but that is
not a viable option.
González added that
there could be the
possibility that a part
of the foreign reserve
could be available in
Japanese Yen or Euros,
which could result as an
interesting point from a
point of view of
commitments.
The dollar has fallen to
the Euro in the past
weeks fueled by an
official announcement by
China to diversify its
foreign reserves.
The Japanese Yen has
grown stronger against
the US dollar. The US
Federal Reserve says the
dollar has lost 5.4% in
value against the Euro
and 6.8% against the Yen
in the three months
ending in September. The
drop in the value of the
green currency is not
sitting well with
commercial partners of
the US.
Earlier this week, US
Treasury Secretary,
Henry Paulson, said the
problems in the housing
and credit markets that
have an impact the US
economy also impact the
dollar, but 'over any
reasonable period of
time,' he believes the
fundamental strengths of
the economy 'will shine
through.'
In his brief comments to
reporters in the
Treasury pressroom,
Paulson did not fail to
reiterate the currency
policy mantra that 'a
strong dollar is in our
nation's interest' and
the value should be
based on fundamentals in
the market. |
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