A European Central Bank official emphasized the erupting disputes in foreign exchange markets worldwide, implying the risk of aggressive currency devaluation that could impact the eurozone’s recuperation.
Executive Board Member Yves Mersch stressed the central bank’s move to drag the key rate into negative ground was not their move to fortify the common currency’s standing in the global currency markets.
In December, the ECB unveiled expanded stimulus measures seeking to beef up the economic recuperation in Europe. Refinancing rate was cut and deposit rate was decreased to -0.4%.
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