UNITED NATIONS(Reuters) - The United Nations warned on Wednesday of a possible crisis of confidence in, and even a "collapse" of, the U.S. dollar if its value against other currencies continued to decline.
In a mid-year review of the world economy, the U.N. economic division said such a development, stemming from the falling value of foreign dollar holdings, would imperil the global financial system.
The report, an update of the U.N. "World Economic Situation and Prospects 2011" report first issued in December, noted that the dollar exchange rate against a basket of other key currencies had reached its lowest level since the 1970s.
Full text
UN Report: World Economic Situation and Prospects 2011 Global Outlook
Comment: The effects of a dollar collapse would dwarf any consequences of the euro crisis.
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