Draghi Seeks to Ease Talk of Global Currency War

The president of the European Central Bank sought on Monday to ease fears that countries including Japan were deliberately weakening their currencies.

The comments by the president, Mario Draghi, appeared to show how some of the world’s most senior economic policy makers were continuing to limit the possibility of a so-called currency war.

Over the weekend, finance ministers from the Group of 20 pledged to refrain from devaluing their currencies to gain a competitive advantage in global trade.

During an afternoon of scheduled testimony before the European Parliament’s economic and finance committee in Brussels, Mr. Draghi said that the euro’s current exchange rate was close to its long-term average. He advised officials not to make alarmist comments.

“Most of the exchange rate movements that we have seen were not explicitly targeted; they were the result of domestic macroeconomic policies meant to boost the economy,” Mr. Draghi told the committee, without mentioning any countries by name. “In this sense, I find really excessive any language referring to currency wars.”

But Mr. Draghi also seemed to suggest that central banks could succumb to mutual suspicion about whether exchange rates were being deliberately weakened.

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