European Central Bank President Mario Draghi: Exchange Rate

exchange rate: The strengthening of the exchange rate would require, to make our monetary policy stance to remain equally accommodative, it would require further monetary policy accommodation, Draghi told reporters in Washington yesterday. The strengthening of the exchange rate requires further monetary stimulus. Thats an important dimension for our price stability, according to Business Week. While the Frankfurt-based central bank doesnt have a currency target, the exchange rate impacts on inflation and we have an inflation mandate, Executive Board member Benoit Coeure told Bloomberg Television on April 11. So the stronger the euro, the more need for monetary accommodation and European Central Bank President Mario Draghi said a further appreciation of the euro would trigger more monetary stimulus in his strongest warning yet about the regions rising currency. The toughest in a series of currency comments from Draghi and fellow ECB officials came after the euro appreciated 6 percent versus the dollar over the past year. A rising exchange rate threatens the central banks ability to deliver inflation of just below 2 percent because it would cheapen imports and hurt exporters. (news.financializer.com). As reported in the news.