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ECB President Draghi - Recent volatility of exchange rates created new obstacles

ECB President Mario Draghi last week voiced the fact that the observed growth of the single European currency creates problems for the leadership and attracts special attention. Draghi also said that the ECB has no reason to claim victory in heating inflation in the region.

The annual inflation rate last month was 1.3% due to the sluggish growth in the cost of energy. Experts say that Draghi strengthens his rhetoric in the issue of the price dynamics of the single European currency.

In his December speech in the rhetoric, the head of the ECB already sounded aggressive statements. He also criticized the statements of the head of the US financial ministry Stephen Munichin that the weak American currency is a boon for the export-import sector of the country. Dragi noted that such words are a violation of the regulatory global agreements that are designed to prevent the emergence of currency wars.

In January this year, the regulator confirmed its intention to continue the asset buy-back program, at least until September, in a half-monthly amount (30 billion euros). Given that the European economy is now showing better results over the past decade, many experts agree that the European regulator will soon announce its intention to wind down the stimulus program by the end of the year.