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Top European Central Bank Executive Warns of Global Currency War

Reuters  ( Original )
JAN 26, 2018

ECB Board member Benoit Coeure expressed frustration at the recent saber-rattling surrounding currency manipulation, and implored the US (without actually mentioning the US) to tone down its rhetoric:

“The last thing the world needs today is a currency war,” Coeure said a panel at the World Economic Forum in Davos. “We live in a world where exchange rates are not and should not be targeted for competitive purposes.”

“We see lots of volatility created recently by different statements and I think that’s just not helpful,” Coeure said. “Volatility is not helpful and if that would reach a point where it would create any unwarranted consequence for us, any unwarranted tightening for monetary policy, we would have to reassess.”

The ECB is preparing to cease three straight years of a cumulative $2T-worth of asset buys and worries that a strong Euro (especially relative to the dollar) will hurt import prices and dampen the effects of stimulus efforts.

ORIGINAL SOURCE: ECB warns against global currency war at Reuters on 1/26/18