Experts See Weaker Dollar, but No Collapse, as Result of Financial Crisis

The financial crisis in the US banking system and the proposed US$ 700 billion government rescue package now being drafted in Washington both pose risks to the stability of the US dollar, according to leading bankers and economists gathered at the World Economic Forum’s Annual Meeting of the New Champions 2008. However, a lack of investment alternatives, combined with the likelihood that the economic downturn will spread to Europe, should limit the downside for the US currency.