Is there any indication that the Euro rate is being politically manipulated?

The Politicus
Aug 21, 2018 09:00 AM 0 Answers
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In a recent (August 20, 2018) interview for Reuters about international politics, the president of the United States of America Donald J. Trump stated (emphasis mine):


“I think China is manipulating their currency, absolutely. And I think the euro is being manipulated also. ... And what they are doing is making up for the fact that they are now paying a lot for - hundreds of millions of dollars, and in some cases billions of dollars - into the United States Treasury - and so they’re being accommodated and I’m not, and I’ll still win.”

I am interested in the statement in bold: Is there any indication that the Euro rate is being politically manipulated ? If yes, how and in which direction ?

According to its statutes the Eurozone Central Bank is independant from political power and must act according to a rigid set of economic goals, the main one being the regulation of inflation rates.

The main objective of the ECB is to maintain price stability in the euro area.

Also, it seems to me than all Euro-zone countries wouldn't agree about their favorite rate for the currency: for instance, a strong Euro reduces the cost of oil importations and protect investors' interests (which may suit countries with a positive balance of paiement, say, Germany) but a weak Euro will make economic production more competitive and help exportations and industries (which may suit countries with a high level of unemployment, for instance in the south of Europe).

Possibly related: How can a currency be manipulated?

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  • August 21, 2018