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ECB is worried about US political influence on exchange rates – Nowotny

The European Central Bank fears that the United States will exercise “political influence” on exchange rates and will make this a topic at the upcoming G20 meetings, the ECB board member said in an interview on Sunday. the Austrian Ewald Nowotny.

“We, at the ECB, are certainly worried about the attempts of the United States to politically influence the exchange rate,” Nowotny told the Austrian radio station ORF.

“That was a topic of economic discussions in Davos, where the ECB addressed this, and it will undoubtedly be an issue at the next G20 summit.”

The next G20 summit will be held in March in Argentina.

Nowotny’s comments follow his statements earlier this month when the Austrian said the US Treasury Department was deliberately pushing the dollar down deliberately.

A weaker dollar tends to benefit large multinational companies in the US, but it can also make imports more expensive and hurt consumers. The dollar has fallen 2 percent this year after depreciating 10 percent in 2017.

The positive economic signals in the United States, including low unemployment, solid growth and moderate inflation, do not stem from the policies of President Donald Trump, said Nowotny, but from those established by his predecessor, former President Barack Obama.

“You have to look at the economy for a longer period,” he said. “What the United States is currently experiencing is the legacy of the previous government, as is the policy of the Fed,” he said.

Trump “started with a good inheritance,” said Nowotny.

 

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