Dubai, June 07: The International Monetary Fund (IMF) has said that the rapid decline in the dollar was being exaggerated, and that the United States remained an engine for medium- and long-term growth in the world economy. "There is some exaggeration in the world about the slide of the dollar," IMF managing director Horst Kohler told a press conference in Dubai.
"On the one hand it's clear, with this huge current account deficit, (that) the drop of the dollar should not be a surprise. It is in a way even wanted in order to solve" this imbalance.

"On the other hand, i just feel it's premature to write off the dollar. It seems to me that still the US ... Has the potential for strong growth. In my view the US economy will remain in the medium- and long-run a locomotive, an engine, for growth in the global economy."
Kohler added that it was imperative Europe and Japan accelerate their process of reform in the medium term. Bureau Report