Outcome will weaken euro valuation; export windfall likely for Germany.
ECB’s quantitative easing programme and deepening of Greek crisis among the factors sending the euro down and boosting prospects for eurozone exporters
A fresh plunge in the value of the euro against the dollar was shrugged off by the European Central Bank (ECB) on Wednesday as it said its new growth-boosting policy would work without triggering a global currency war.
With the euro on course to dive below parity against the dollar within the next few weeks, one of the ECB’s senior policymakers denied that Frankfurt was deliberately driving the single currency lower in an attempt to secure a competitive advantage.
Ewald Nowotny, the head of Austria’s central bank and a member of the ECB’s governing council, said the ECB did not target the exchange rate. “The ECB, as a central bank, does not have the exchange rate as a policy. It is a side effect of other things.”
He added: “Exchange rates are not a major dominant factor for the global economy. I think it would be wrong right now to assume that what’s going on is a currency war.”
http://www.theguardian.com/business/2015/mar/11/euro-12-year-low-gainst-the-dollar?CMP=Share_AndroidApp_WhatsApp
ECB’s quantitative easing programme and deepening of Greek crisis among the factors sending the euro down and boosting prospects for eurozone exporters
A fresh plunge in the value of the euro against the dollar was shrugged off by the European Central Bank (ECB) on Wednesday as it said its new growth-boosting policy would work without triggering a global currency war.
With the euro on course to dive below parity against the dollar within the next few weeks, one of the ECB’s senior policymakers denied that Frankfurt was deliberately driving the single currency lower in an attempt to secure a competitive advantage.
Ewald Nowotny, the head of Austria’s central bank and a member of the ECB’s governing council, said the ECB did not target the exchange rate. “The ECB, as a central bank, does not have the exchange rate as a policy. It is a side effect of other things.”
He added: “Exchange rates are not a major dominant factor for the global economy. I think it would be wrong right now to assume that what’s going on is a currency war.”
http://www.theguardian.com/business/2015/mar/11/euro-12-year-low-gainst-the-dollar?CMP=Share_AndroidApp_WhatsApp
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