The euro exchange rate is determined by market processes and is influenced by factors such as U.S. and European monetary policy, ECB policymaker Jens Weidmann said on Tuesday, responding to criticism from a trade adviser of U.S. President Donald Trump.
Peter Navarro said the “grossly undervalued” euro served as a currency for Germany alone, allowing the country to “exploit” the United States and others.
Weidmann told the Redaktionsnetzwerk Deutschland media group (RND) that Navarro had overlooked the fact that the German government does not decide on the euro exchange rate.
“(Euro zone monetary policy) is not determined in Berlin but rather in Frankfurt by the Governing Council of the European Central Bank, with the aim of price stability in the euro zone as a whole,” Weidmann said in an interview due to be published on Wednesday.
(Reporting by Michelle Martin; Editing by Gareth Jones)