STRASBOURG, France (Thomson Financial) - European Central Bank president Jean-Claude Trichet called on euro zone politicians to be responsible in their comments on the euro's exchange rate.
"Let's be as responsible as possible in the present circumstances," Trichet told the European Parliament.
French President Nicolas Sarkozy in particular has complained about the strength of the euro, which this week reached a new all-time high against the dollar.
Trichet said positions on exchange rates have to be worked out in the forum of the G7 group of finance ministers and central bankers, and it is not possible for the euro zone to act on exchange rates without the support of its G7 partners.
"This is the way which we have, since the floating exchange system has been functioning, to discuss (matters)," he said.
"It is not to say that the situation is easy. It is not to say that the situation is very nice," he said.
But he said it is essential for the euro zone to maintain a dialogue on exchange rates with its G7 partners.
"No one could imagine that we could do things that would be contradictory with our partners. It won't work," he said.
He once again noted that the G7 has urged China to let the yuan appreciate faster and that it expects the yen to appreciate as investors take stock of the Japanese economic recovery.
Trichet said all euro zone governments have signed up to the independence of the ECB and said he will strongly defend the ECB against any attacks on its independence.
"All governments in Europe have said that they would fully respect the independence of the central bank," he said.
He said the ECB's independence holds the key to its credibility among investors.
"They trust us because we are independent," he said.
"I will protect the independence of the ECB with the utmost firmness in all circumstances," he said.
steve.whitehouse@thomson.com
sw/jfr
