After plummeting to a four-month low against the US Dollar yesterday the Euro has begun to climb against its American counterpart as a spokesman for the European Central Bank engages in damage limitation.
The Euro Exchange Rate was in the region of 1.2868 against the US Dollar as of 10:46 am GMT
The Euro fell against the majority of its most traded peers yesterday after Dutch Finance Minister, and head of the Eurozone’s financial Group, Jeroen Dijsselbloem implied that the measures taken to preserve Cyprus (which include imposing losses on deposit and bond holders) could be applied to Eurozone nations in a similar fiscal situation.
However, since then Benoit Coeure – an executive board member with the ECB – has spoken out against Dijsselbloem’s comments.
During an interview with Europe 1 Radio Coeure stated: ‘Dijsselbloem was wrong to say what he said. The experience of Cyprus isn’t a model for the rest of the Eurozone because the situation there had reached a level that doesn’t exist elsewhere. All countries have different problems – economic problems, problems of unemployment – but no country has the same concentration of problems as Cyprus.’
Coeure also stated: ‘The first lesson is that we need better control of banks. We need an independent European regulator, and that will be the case by mid-2014 and it will be the ECB, and we need to identify problems earlier in the Eurozone […] I do not see why we would use the same methods elsewhere.’
After Coeure’s comments were publicised the Euro posted modest gains against several of its main currency rivals.
Comments are closed.