Evaluation of the Strengthening of the Euro by the AMB in March

ECB's March Assessment and the Strengthening of the Euro

The spokesperson of the European Central Bank (ECB), Italian policymaker Fabio Cipollone, announced that they will evaluate the effects of the euro's strengthening in March. According to the ECB's official website, he noted the relationship between the exchange rate and inflation dynamics, stating, "We will see how the new forecasts align and the impact of this."

No Target for the Euro

Cipollone emphasized that the ECB does not have a specific target for the common currency. In the past year, the euro has fluctuated in the range of 1.17-1.18 dollars and continues to be an important player in the foreign exchange market. ECB officials made the decision to keep borrowing costs unchanged during their fifth meeting last week.

Discussions Last Week

ECB President Christine Lagarde evaluated the rise of the euro and stated that they see themselves in a "good position." The President of the Bank of Greece, Yannis Stournaras, mentioned in a statement that they are monitoring the exchange rate, but expressed that the current movements are "not dramatic." These statements indicate that the exchange rate movements which create uncertainty in the markets may be more moderate.