Forex pegging may be counterproductive says Dodge

Bank of Canada Governor David Dodge said in previously private remarks to the Bank of France on November 4 that pegging a country's foreign exchange rate could hinder macroeconomic adjustment.

"Efforts by some countries to slow or prevent required adjustments in their economy by pegging exchange rates may, in the end, be counterproductive," Dodge said in a statement that was posted on the Bank of Canada's website on Tuesday.

U.S. media reported last week that the U.S. Treasury wants the Interna