Draghi opens fire at US dollar policy

European Central Bank (ECB) chief Mario Draghi warned on Thursday (25 January) that US support for a weaker dollar was fuelling market instability. “The recent volatility in the exchange rate represents a source of uncertainty which requires monitoring with regard to its possible implications for the medium-term outlook for price stability,” Mario Draghi said at the ECB’s monthly press conference in Frankfurt.

He noted that volatility was partly due to the “unquestionable” improvement of the economy. But he added that another reason was “the use of language that doesn’t reflect the terms of reference that have been agreed.”

Without explicitly mentioning him, Draghi took aim at the US Treasury secretary Steven Mnuchin, who said earlier this week that “obviously a weaker dollar is good for us [the US] as it relates to trade and opportunities.” …

Read more : EUObserver, 25.01.2018