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By Luke Heighton
SINTRA, PORTUGAL (MNI) - European Central Bank President Mario Draghi
insisted the ECB does not target the euro exchange rate, in a response to tweets
by U.S. President Donald Trump.
"We have our remit, we have our mandate. We don't target the exchange
rate," Draghi told a forum in Sintra, Portugal.
Earlier, Trump had suggested Draghi had used a speech in which said the ECB
had "considerable headroom" for fresh quantitative easing to manipulate the
value of the euro against the dollar.
"Mario Draghi just announced more stimulus could come, which immediately
dropped the Euro against the Dollar, making it unfairly easier for them to
compete against the USA. They have been getting away with this for years, along
with China and others," Trump wrote.
Draghi reiterated that additional monetary stimulation would only be used
"in the absence of improvement" in the eurozone economy. He stressed that
forward guidance remains the ECB's primarily policy tool, and can be enhanced
"by adjusting its bias and its conditionality to account for variations in the
adjustment path of inflation"; and that "the limits of the tools available to
the ECB are "specific to the contingencies we face."
--MNI London Bureau; +44 203 865 3829; email: email@example.com