21 January 2004, 10:37  Leibsher says forex intervention an option-paper

MILAN, Jan 21 - Currency market intervention is an option for central banks but European monetary officials will not comment on when or how such a move could happen, Austria's Central Bank Governor was quoted as saying on Wednesday. "Of course intervention is one of the possibilities that a central bank has at its disposition. But we cannot discuss how and when beforehand," Klaus Liebscher told Italian newspaper Il Sole 24 Ore in an interview. European Central Bank Chief Economist Otmar Issing on Tuesday hinted at the possibility of intervention when he warned financial markets that pushing the euro too fast was "not a one way street". Liebscher said he agreed with Issing and ECB President Jean-Claude Trichet that a central bank should seek to ensure stable financial markets and be worried about "extreme movements in any direction, high volatility and executive speculation". However, the positive effects of rising global demand were offsetting the foreign exchange impact, he told Il Sole.//

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