On 4th March, finance minister of Europe made clear that their main concern about the euro against the US dollar. They believed that they had not forced down to manage the intercessions of the central bank in the markets of foreign exchange. Finance ministers from the Eurozone’s 15 countries issued a report on 3rd March stating that in these situations they are very much concerned about the movements of the exchange rates and they believe that the present movements are shimmering economic essentials. As the euro mounted to 1.5275 dollars which was at the highest level since 1999, the finance ministers did began to react. During the previous year the euro had climbed by 6 % against the US dollar which is stronger than the Japanese Yen and Renminbi of China.
Some of the financial market analysts distinguished that the report of Eurozone was comparable in tone to which was utilized before the ECB mediated in September 2000 in support of the euro. On 3rd March financial ministers brought to notice the reality that ECB President Jean-Claude Trichet had stressed before having a conversation, which the authorities of United States had assumed that it was in the interest of US nationals to possess a strong dollar. In the financial market this was taken as a warning sign made by Trichet about the dollar.
However on 4th March, finance minister of Greece Mr. George Alogoskoufis said that there had been no debates between his colleagues on the common financial market intercessions by the US Federal Reserve and ECB. “There were no debates on that between us” said Alogoskoufis. He even added by saying that there was a minor increase of interest regarding the developments of currency market as the instability prolongs and this is what they do not prefer. However this instability does not mean to be drastic, it is a universal dilemma and not only the problem of Europe. He said that on their own they cannot do anything and so they need assistance from all the European countries.
The Eurozone finance ministers group chairman Mr. Jean-Claude Juncker did not even comment on the interventions of the central bank. He said that he believes this might be wise enough to provide goals to the financial markets. However, some of the Eurozone countries like Netherlands and Germany argued that there are benefits in the strength of their currency, which is serving to hold the inflation that is at present at a 14 year high. Moreover they observe modest impact on the export performance of Eurozone.
President of European Commission Jose Manuel Barroso said that the viewpoint was by no method miserable, even though in the last month European Commission had stopped Eurozone’s economic growth forecasts for the year 2008. He also said that they were facing financial headwinds which may have been strong enough during the previous years to sink them. However, at present Europe is beginning to develop and also produce more jobs. At present the employment rate in the region is at the highest level at 66 % and the unemployment rate is at the lowest level at 6.9 %.

Tags: ECB: European Central Bank News, European Economy News //