Paulson 'Committed' to Dollar's Status
Treasury Secretary Hank Paulson told investors in the United Arab Emirates on Monday that the U.S. is committed to pursuing policies that maintain the U.S. dollar's status as the world's reserve currency.
Paulson's comments come as the value of the dollar has dropped against foreign currencies and the Federal Reserve has lowered interest rates again dramatically to combat the credit crunch, while government deficits at the state and national level are increasing in the U.S.
In this environment, foreign investors are feeling jitters about continuing to finance U.S. debts, and oil producing nations in the Middle East are grappling with high inflation and re-evaluating their dollar currency pegs. Meanwhile, some economists have predicted the end of the dollar's status as the world's reserve currency in the next two decades.
"I am committed to promoting policies that enhance the underlying competitiveness of the U.S. economy and ensure that the dollar remains the world's reserve currency," Paulson said in a speech to the U.S.-U.A.E. Business Council, which was the final stop on a four-day tour to the Middle East to reassure regional leaders that the U.S. still welcomes their investments."The U.S. dollar has been the world's reserve currency since World War II and there is a good reason for that," Paulson said. "The U.S. has the largest, most open economy in the world, and our capital markets are the deepest and most liquid. The long-term health and strong underlying fundamentals of the U.S. economy will shine through and be reflected in currency values."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV