Member of the Board of Directors of the European Central Bank (ECB) and President of Bundesbank Ioakim Nugel attempted to downgrade the concerns that his appreciation euro It could hurt exporters by limiting their competitiveness.
While the euro has increased nearly 14% against the dollar this year, the ECB member filed a speech Monday (22.9.2025) that it is more important to compare the euro yield with a wider team of commercial partners. Such an analysis shows a much smaller appreciation, he said. “Therefore, a simple examination of euro profits against the US dollar exaggerates with the extent to which the domestic export economy is burdened,” Nagel said. “Overall, I’m not worried about the current level of euro valuation.”
The single currency has been a key issue of debate among the ECB officials, with some arguing that over -profits could prevent the recovery of the area and put down prices down. Lithuania’s central bank leader, Gidimina Simkos, said the weekend that this is one of the reasons why the ECB should re -reduce interest rates in December.
Others were more skeptical. While ECB Vice President Luis de Ginto warned earlier this year that any increase beyond $ 1.20 would make things “much more complicated”, last week said that policymakers “have no specific limit” and that it is better not to be examined.
The euro is currently negotiating around $ 1.18.
The dollar losses are partly due to expectations to reduce interest rates by the US Federal Bank (Fed), President Donald Trump’s duties policies and attacks on the independence of the Central Bank. These developments have created hopes for ECB officials that the euro could play a bigger role on the international stage.
In his speech, Nagel said that There is no evidence that the dollar will be replaced as a global reserve currency. However, “there are trends for greater differentiation” and a stronger international role for the euro would be “desirable”.
In order to achieve this goal, policy makers must lift obstacles to European financial markets and to ensure the sovereignty of its payment systems, according to Nugel, who said a digital euro would also help this issue.
‘It would be an important milestone for the savings and investment union and a logical response to stablecoins“, He said. “The digital euro would make Europe more independent of critical infrastructure.”