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World Scrambles to Boost Buck

Weak dollar doesn't help anyone—except the US

By Rob Quinn,  Newser Staff

Posted Nov 13, 2009 3:43 AM CST
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(Newser) – Central banks around the world are stepping up measures to keep the American dollar strong and their own currencies weak. The dollar 's drop to near 15-month lows this week sparked fears that exports will become uncompetitive, threatening their fragile economic recoveries. Pacific Rim countries are especially concerned that China—which links its currency to the dollar—is able to keep exports low and price out competition, the Wall Street Journal reports.

Treasury Secretary Tim Geithner repeated a pledge this week to try to keep the dollar strong, although the administration has taken few concrete steps toward doing so as a weak dollar continues to help US exporters. Asian finance ministers meet this week in Singapore, where they're expected to address both the weak US dollar and China's refusal to make its currency more flexible.

South Korea, Russia, and Thailand were among the countries snapping up dollars this week to keep their own currencies weak.
South Korea, Russia, and Thailand were among the countries snapping up dollars this week to keep their own currencies weak.   (AP Photo/ Lee Jin-man)
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COMMENTS
Showing 3 of 6 comments
Netstorm2k10
Nov 14, 2009 12:05 PM CST
Ok, this theory about how a weak dollar makes it cheaper for other countries to import our goods requires the U.S. to still be a manufacturing country instead of a consuming country.
webtronix
Nov 14, 2009 10:31 AM CST
Well Done sniffer, you said in one foul swoop m8!
Ucantusethatname
Nov 14, 2009 2:38 AM CST
Geithner pledges "to try" to keep the dollar strong. You don't keep the dollar strong by printing more dollars, and you don't by spending trillion of dollars the country does not have. How about paying your taxes! That would help the dollar. Geithner, not Craig, should be leaving the White House.
Money • US • World

 
currency • yuan • US dollar • US exports • weak dollar

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