Greenspan sees more declines in dollar [View All]

[Jcrowley]

Greenspan sees more declines in dollar
By SHARON WROBEL

Former Federal Reserve chairman Alan Greenspan said the dollar will continue to drift downwards on growing signs that OPEC nations are shifting their assets out of the US dollar towards the euro and yen.

"OPEC nations are switching their assets out of the dollar into the euro and the yen," Greenspan said Monday in a video conference interview with Likud Leader Binyamin Netanyahu at the Globes Israel Business Conference. "I suspect those pressures will continue and the dollar will be moving lower until there is a change in the US current account balance."

However, Greenspan added that giving an answer to Netanyahu's question of how low the dollar will go was like the "probability of tossing a coin."

Netanyahu pointed out that Israel had certain technology advantages, representing a niche competitor on the global market and raised the question whether the country should implement government subsidies to identify this competitive advantage or let the free market function.

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