Now that currency wars have been headline fodder for a couple of weeks, necessity dictates the authorities needed to step in and downplay the notion. This market has been assured from the highest authority, credible or not, that the European Central Bank (ECB) sees no risk of a currency war and that it must be avoided. ECB Vice President Vítor Constâncio reiterated the central bank’s position, stating that they respect the "the G7- and G20-nation principles of floating exchanges" and with the EUR being a member, its value should be left to the markets. The authorities’ only concern lay in the single currency's exchange rate effects on future inflation.
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