Euro remains credible currency: ECB

Euro remains credible currency: ECB


The euro remains a 'credible' currency, the European Central Bank's chief has said

The euro remains a “credible” currency despite the debt crisis that has required the bail-outs of Ireland and Greece, the European Central Bank’s chief has said.

A day after the ECB extended its special support measures for banks, Jean-Claude Trichet urged European governments to make a “quantum leap” towards reforming and cleaning up budgets.

He said in Paris: “This is no time for complacency.”

Mr Trichet would not comment on whether the ECB has increased its purchases of government bonds by highly indebted countries like Ireland or Portugal to ease their borrowing rates.

The central bank has kept buying the bonds throughout the debt crisis but refused to say whether it has or will boost that programme now that investor worries about bail-outs have heightened

Trichet insisted the euro itself is not at risk.

“The euro is a credible currency. The euro is a currency that is considered just as credible for the next 10 years as for the last 12 years,” he said.

The currency was steady against the dollar on Friday, buoyed by Mr Trichet’s pledge to extend crisis liquidity measures to banks and speculation the bond purchases are ongoing.

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