December 3, 2009 / 4:27 PM / 10 years ago

Israel's Fischer says world must accept a weaker USD

NEW YORK, Dec 3 (Reuters) - Bank of Israel Governor Stanley Fischer said on Thursday the world has to accept a weaker U.S. dollar in order to ensure the global economy recovers soundly.

“We also have to realize, what is hard to get across, there has to be a global rebalancing. Either the U.S. runs a very long period of recession, which is a really bad idea, or the dollar has to weaken so that balance of payments can be straightened out,” Fischer said in response to a question during a business breakfast in New York.

“So we have to got to accept, as do other people, there has to be appreciation vis-a-vis the American dollar. Most people have kind of accepted that. It is just that when it gets out of line that people get nervous,” he said. (Reporting by Daniel Bases; Editing by Padraic Cassidy) ((daniel.bases@thomsonreuters.com; +1 646 223 6131; Reuters Messaging: daniel.bases.reuters.com@reuters.net))

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