Strengthening of the Euro: Statements from the European Central Bank

The Rise of the Euro is Being Monitored by the European Central Bank

Recently, the euro has been experiencing a rise, which is being closely monitored by the European Central Bank (ECB). However, ECB Governing Council member Yannis Stournaras states that this situation is not concerning.

Staying Within the Historical Trading Range of the Euro

The Governor of the Bank of Greece, Stournaras, mentioned in an interview with Bloomberg television that they are monitoring all variables that affect economic activity and inflation. The strength of the euro since 2025 is part of the ECB's projections, emphasizing that it has stayed within its historical trading range against the dollar.

Central Bank Interest Rates and Economic Stability

Stournaras stated, "A large part of the appreciation occurred in the first quarter of last year. Therefore, there is no dramatic situation to change our action plan." These remarks came after the ECB decided to keep the deposit interest rate steady at 2% on Friday. President Christine Lagarde mentioned that the European Central Bank feels confident in its position and considers the recent rise of the euro to be insignificant.

Views of Other Policymakers

French Central Bank Governor François Villeroy de Galhau stated that the dollar has gained stability lately and the euro/dollar parity has reached the level of 1.18. This level indicates average levels in euro history.

Latvian official Martins Kazaks noted that fluctuations in the euro exchange rate are established in the ECB's baseline scenario while warning that a rapid strengthening could negatively affect inflation.

Performance of the European Economy and Potential Risks

Stournaras assessed the risks regarding inflation and economic growth in a balanced manner. The European economy has recorded a growth of 0.3% in the fourth quarter due to its resistance to customs duties.

However, it is important to remember that overall risks continue to exist and that major risks such as the instability of U.S. trade policy are present.