What does the strenght of the euro and of the dollar depend on?
The strength of the dollar or of the euro, or of any other currency for that matter, depends on a countless number of factors. The strength of the euro will mainly depend on the ECB’s will to mantain a strong stability pact among the euro countries. If necessary, the European System of Central Banks, ESCB, co-ordinated by the ECB, will intervene energetically to avoid any sort of speculation on European currencies. With regard to the relative strength of the euro and the dollar, the matter is very different. Everything depends on the big investors and on the impression of common intentions and union which Europe can give on global markets. On this subject, the statements made by Russia and other countries should not be underestimated: they have affirmed their will to adopt the euro, as opposed to the dollar, as the currency for their economic transactions with Europe from the 1 January 1999.
