U.S. official to CNN: a strong dollar, but the yuan is coming .. and do not think about Islamic instruments currently

[yota691]

U.S. official to CNN: a strong dollar, but the yuan is coming .. and do not think about Islamic instruments currently

EXCLUSIVESince hours and 57 minutes

 

 

Dubai, United Arab Emirates ( CNN ) - Dennis Lockhart, president of Bank of the U.S. Federal Reserve (central) in Atlanta, that there is no alternative to the dollar as a global reserve at the present time for the countries associated in the Middle East and beyond, but expect up gradually to other currencies in the coming years, he toldCNN in Arabic thinking by asking Islamic bonds linked benefit achieved.

Lockhart said in response to a question by CNN in Arabic about the correctness of the decision of the Middle East, especially the Gulf states, to maintain the dollar peg during the global financial crisis in light of the recovery to the U.S. economy: "When we had the financial crisis, it was natural to believe that the dollar weak has It has its place, and the calls to disengage it justified. "

The official said the U.S. economy, saying: "But from my point of view, the dollar in the medium term will lose some of its status as an international currency and a single in favor of other currencies, such as the Chinese yuan, but in the short term there is no alternative to the dollar, which is based on the strength of America's economic fundamentals of the U.S. economy recovered its strength and growth. "

 

On the possibility of thinking about offering Islamic bonds also intends to European countries, Lockhart said: "My interest in the Islamic economy began since coming to the region a few years ago, and my view that the economy will continue to grow strong because the countries that have financial surpluses are Muslim countries, it also has the infrastructure, human and material appropriate. "

He continued, Lockhart said: "I know that there are complications for the issuance of instruments because of the need for the approval of legitimate bodies on them, may be the issuance of Islamic bonds is required in America, under any circumstances was this method provides us with financing at the best conditions possible, but the U.S. bond market this strong and a lot of demand, There is no need to move this option. "

Positions Lockhart came during a speech in Dubai Sunday, part of the activities organized by the American Business Council in the UAE, in which he stressed that he speaks in his personal capacity and not official, and that the views which will present you may not agree with the views of the Treasury Department or the State Department.

Lockhart said that the world economy "is still growing in a moderate manner," but noted that the developing markets, which were paid growth after the financial crisis, is witnessing a decline in the pace of growth of the U.S. economy compared to progress. He also noted that inflation and interest rates still low around the world.

And the status of the U.S. economy drew Lockhart to be the second half of 2013 witnessed a growth rate of three per cent, but the first quarter of this year saw a hovering clear so that did not increase growth of 0.1 percent, a lecturer reason to "poor weather conditions which have affected a lot of sectors "But he expressed confidence that this quarter" is unique and will not be repeated, "he said, adding:" I estimate that the remainder of the year will see continued growth confirms the rate of three per cent. "

He predicted Lockhart that with the middle of next year .2015 United States will be in front of conditions that would allow a gradual increase of interest amounting to zero per cent currently, to end quantitative easing program aiming to buy distressed assets from the market by October / October or December / December 2014 at the latest estimate, note that the values ​​of support has dropped significantly as the economy improves.

He Lockhart that his vision for the future of the economy in America and the world "optimistic," but he went on to say: "But we have three risks: first, doubled in the first quarter of this year, as we await what will happen in the coming period, especially in light of conflicting results to the labor market . Secondly, the possibility of a financial problem in developing markets or America, we must always be alert to the risk of financial bubbles form because of the policy currently in place. "

He added: "The third thing is the geopolitical risk such as tension between Russia and the West over Ukraine, it may be for this difference significant effects on the financial markets and commodity markets, and this may rebound later on the American market."

In response to questions from journalists after the word, touched Lockhart to the issue of extraction of oil and gas from the rock in America, said that the impact of this will appear on the balance of trade the U.S., especially in light of the expectation that become America an exporter of energy, and added: "But I think we'll get to the stage of close of energy independence at the level of North America, which in collaboration with Canada and Mexico, but the oil will remain a global commodity, and the price will rise and fall as determined by the international market. "

In response to a question about the possibility that his visit to the UAE has witnessed discussions on increasing UAE investments in U.S. Treasury bonds Lockhart said: "The countries that have a financial surplus in the Middle East has a lot of investment instruments of America and we hope to continue that, but not looking for things that are specified with the UAE side Decisions abandoned them. "

 

[islandman7]

Yea, when someone keeps telling me how wonderful they are and that their economy is strong, currency wanted and needed by the world, I wonder who they are try to convince ?

[MyLadiesDaddy]

Interesting. Now why would you say something like that out of nowhere?