"We watch very closely the investment decisions of investors in all classes of U.S. securities, including governments buying U.S. securities. We continue to think that investors overseas, including governments, need to hold U.S. Treasuries as part of a diversified portfolio," Kimmitt said on CNN television.
LONDON (Reuters) - Deputy Treasury Secretary Robert Kimmitt dismissed on Friday fears about the weakness of the dollar, saying overseas investors would need to continue holding U.S. Treasuries.
"We watch very closely the investment decisions of investors in all classes of U.S. securities, including governments buying U.S. securities. We continue to think that investors overseas, including governments, need to hold U.S. Treasuries as part of a diversified portfolio," Kimmitt said on CNN television.
Kimmitt said there was a "shared responsibility among governments" to take steps to deal with the current global financial crisis.
Kimmitt repeated his view that sovereign wealth funds should be watched closely. "Sovereign wealth funds ... have to this point been a very positive force in the world economy. But they are growing in size and number, and vigilance is required."
!ADVERTISEMENT!Sovereign wealth funds currently have assets of $2.5 trillion. The Treasury has a long-standing request that IMF sovereign fund "best practices" now under development ensure that such investments are not used to gain political influence.
(Reporting by Carolyn Cohn; editing by David Stamp)
