Schroeder seeks action to stem euro's rise

9th December 2004, Comments 0 comments

9 December 2004 , TOKYO - Chancellor Gerhard Schroeder on Thursday indirectly called on the European Central Bank (ECB) to intervene to help stem the rise of the euro despite data showing German exports continue to defy the strong currency. During a business forum in Tokyo Schroeder said though the independence of the central bank should be respected, he added that a lesson can be learned from the monetary policy of Japan. The Bank of Japan recently intervened to correct the strengthening of the yen to th

9 December 2004

TOKYO - Chancellor Gerhard Schroeder on Thursday indirectly called on the European Central Bank (ECB) to intervene to help stem the rise of the euro despite data showing German exports continue to defy the strong currency.  

During a business forum in Tokyo Schroeder said though the independence of the central bank should be respected, he added that a lesson can be learned from the monetary policy of Japan. 

The Bank of Japan recently intervened to correct the strengthening of the yen to the dollar in the currency market. 

Chancellor Schroeder arrived in Japan on Wednesday for official talks in Tokyo following a three-day visit of China.

The euro sharp rise against the dollar has set alarm bells ringing across Germany's business and political establishment as concerns have grown about the impact of the strong common currency on the nation's key export machine. 

But data released Thursday showed German exports shrugging off the increase in the euro to report double-digit growth in October

The Federal Statistics Office said German exports in October came to EUR 64.4 billion, up 10.2 percent on October 2003 figures. Imports, at EUR 51.9 billion, were 9.3 percent higher in October this year.

The trade surplus for October widened to EUR 12.5 billion, compared with EUR 11 billion  in October 2003, the office said.

In October, German exports to its partners in the 12- nation eurozone showed a 9.9 percent annual rise, while exports to the non-euro members of the European Union were 9.5 percent stronger. Exports to third countries - all other partners outside the EU - were 11.1 percent stronger year-on-year in October.

For the first 10 months of 2004, German exports came to EUR 607.3 billion, up 10.2 percent on the same period last year. Imports were 7.3 percent higher at EUR 473.9 billion.

[Copyright DPA with Expatica]

Subject: German news

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