Bush keen on ensuring dollar stability in international market

The US government headed by President George Bush is keen on ensuring the stability of the US dollar in the international foreign exchange market and make sure that the US dollar continues its role as the major reserve currency in the world, reports UPP special correspondent.
The very fact that the Euro has become today a major reserve currency in the world is appreciated in full measure in the USA and especially by the US treasury officials. But the fact remains that the major currency in the international trading circles is still the US dollar.
Therefore, maintaining dollar stability has become important for the US administration, in the backdrop of the coming Presidential elections it has become more important to ensure that the US dollar does not lose further ground to other major international currencies such as the Euro and the pound sterling.
Secondly, for countries like China and Japan the erosion in the exchange value of the US dollar is not something welcome. Because their major reserve currency holdings are in US dollars, therefore, there is also pressure from China and Japan on the USA to resist the declining exchange value of the US dollar.
In Euro zone there is also a growing appreciation that the increase in the exchange value of the Euro could hurt the export of products from Euro zone to other countries outside the Euro by becoming costlier thus yielding ground to the export products of countries like USA and China who would be cheaper than Euro zone prices for similar items.
Meanwhile, pressure is mounting from different friendly countries on the US administration to ensure the stability of the dollar in the foreign exchange markets especially in the wake of the current downward trend forecast for world economy in 2008 as compared to 2007. In the USA itself voices are being raised against inflation and the need to secure the exchange value of the US dollar at the exchange values that prevailed in September last year. It is also being barged in US monetary circles that dollar exchange value stability will prove a boost to the US economy in the current downward trend at the international level in the economic field.