Strong dollar 'crucial' to global economy

People considering making a foreign exchange should not be put off the US dollar because of the current economic difficulties, it has been suggested.

The World Bank has claimed a strong dollar will be a crucial asset to the global economy as it looks to resurrect itself following the recession.

World Bank president Robert Zoellick told Reuters the dollar would not be removed from its position as the world's leading currency, instead suggesting that a strong dollar would play an important role in the future of the global economy.

"I think the dollar will remain the principal reserve currency," he said.

The comments could provide peace of mind to people considering making a foreign exchange from sterling into dollars, amid global uncertainty in the money markets.

The global recession was brought on last year when a collapse in confidence in the banking industry resulted in many financial institutions having to be bailed out by national authorities.

In the UK, the government provided billions of pounds to support RBS and HBOS, ensuring that they did not collapse.

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