Monexnews-the exchange rate is not a policy of the central bank's target, according to the President of the European Central Bank Mario Draghi on Monday. However, Draghi stressed that if the exchange rate has had an important role to help central banks in judging price stability which becomes the main mandated. Those comments made before attending European Draghi Parliament's Committee on Economic and Monetary Affairs in Brussels.
The statement is in line with the results of Draghi group meetings and developing the G20 industrial Nations last weekend, where they announced the devaluation of the currency that the competition is not going to happen.
The issue of ' currency war ' increasingly heated up since the election of Shinzo Abe as Japan's new Prime Minister. Abe assessed market participants will encourage a more accommodating monetary policy, which will increasingly weaken Japan's currency.
A discussion of the currency war is also increasingly spread in Europe over spiralling Euro, which was helped by the growing belief that the worst phase of the crisis Europe has passed. The Euro has so far observed have been strengthened against other major currencies, thus presenting a threat to exports and the rate of eurozone economic recovery.
In this same time, Draghi also warned that the ECB is starting to realize the risks of holding policy in the period berkepanjangang. Low interest rates, which have been maintained since July last year, are at risk of triggering the penggelembunga housing prices or assets in the eurozone. "As with any painful crisis, bubble can also pose a huge cost for the real economy," added Draghi. (vid)
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