BRUSSELS: The European Central Bank (ECB) must prepare for a stronger euro if the continent wants to boost the single currency’s global status, governing council member Pierre Wunsch says.
“If we want a greater role for the euro, we might have a further appreciation,” the Belgian central-bank chief said in an interview in Brussels.
If there’s already concern about its recent ascent, “do you want at the same time a much greater international role for the euro? I’m not so sure,” he said.
European officials are seeking to turn Donald Trump’s attacks on global trade and US institutions to their advantage by bolstering the standing of the eurozone’s currency, allowing the bloc to enjoy more of the privileges so far reserved for the dollar.
Some, though, fret that this could lead to a stronger euro, hurting exporters and the economy. France urged an assessment of the risks as the region’s finance ministers met last month.
ECB president Christine Lagarde has sought to downplay concerns.
While saying there’s a link between the currency’s status and its exchange rate, Wunsch didn’t sound alarmed by the latest rally. — Bloomberg
