EURUSD:ECB MONETARY & EXCH. RATE AGREEMENTS WITH THIRD COUNTRIES
ECB IS OBLIGATED BY THE LARGEST AND WIDEST VARIETIES OF MONETARY AND EXCHANGE RATE AGREEMENTS BETWEEN THE EUROPEAN COMMUNITY AND WITH THE THIRD COUNTRIES AS INDICATED BY OFFICIAL PUBLICATION BY THE ECB, 2006 NO. 255. AT THE SAME TIME, THE AGREEMENTS IS OBLIGATED TO BE ADAPTED TO THE EXISTING G-5 PLAZA AGREEMENT 1985 AND THE G-7 LOUVRE AGREEMENT 1987 BY ADDING MORE TASKS AND OBLIGATIONS TO THE BOARD OF ECB FOR MANAGING THEIR PRICE STABILITY.
THE FEDERAL RESERVE BANK OF ST. LOUIS PROVOKED THAT THE CREDIBILITY OF THE CENTRAL BANKS IS CONFIRMED BY THEIR ABILITY TO MANAGE THE SUSTAINABILITY OF THEIR TARGET ZONES, AND ECB IS FACING VARYING TARGET ZONES WITH THIRD COUNTRIES BY THEIR AGREEMENTS. THIS MAY CAUSED ECB TO ADOPT WIDER "STABILIZATION RANGE" AT THE UPPER OR AT THE LOWER BANDS/CEILINGS OF THEIR TARGET ZONES OF MIXED WIDTH OF BANDS UNDER THE AGREEMENTS.
THE MEASURED UPPER MEDIUM TERM BAND FOR EURUSD AT 1.2000 FOR 15.38 % AND EURUSD PRICE REACHED 1.2060 FOR 15.96 % AND WENT HIGHER TO 1.2080 FOR 16.15 % AND THEN HAMMERED DOWN TO BELOW 1.2000. SO FAR, THE STABILIZATION WITHIN THE 2.25 %, BUT SHOULD THE ECB TAKES THE ASSUMPTION FOR 2.25 % AS TOLERANCE THAN THE 1.2270 COULD BE THE MAXIMUM CEILING. THIS COULD BE MONITORED DURING THE NEXT 15 DAYS. AND, SHOULD ECB ALLOWS THE EURUSD TO 1.2270 THEN ECB IS STILL CREDIBLE BY MONETARY MEASURES AND SHOULD THE CURRENT LEVEL STRONGLY MANAGED, STABILIZED AND STERILIZED THEN ECB IS MORE CREDIBLE. THE STRENGTHENING OF THE EUROZONE ECONOMY BY THE ECB'S MONETARY POLICY'S PERFORMANCE SHALL NOT BE IGNORED AND EQUILIBRIUM ELASTICITY IS AGREED.
THE FEDERAL RESERVE BANK OF ST. LOUIS PROVOKED THAT THE CREDIBILITY OF THE CENTRAL BANKS IS CONFIRMED BY THEIR ABILITY TO MANAGE THE SUSTAINABILITY OF THEIR TARGET ZONES, AND ECB IS FACING VARYING TARGET ZONES WITH THIRD COUNTRIES BY THEIR AGREEMENTS. THIS MAY CAUSED ECB TO ADOPT WIDER "STABILIZATION RANGE" AT THE UPPER OR AT THE LOWER BANDS/CEILINGS OF THEIR TARGET ZONES OF MIXED WIDTH OF BANDS UNDER THE AGREEMENTS.
THE MEASURED UPPER MEDIUM TERM BAND FOR EURUSD AT 1.2000 FOR 15.38 % AND EURUSD PRICE REACHED 1.2060 FOR 15.96 % AND WENT HIGHER TO 1.2080 FOR 16.15 % AND THEN HAMMERED DOWN TO BELOW 1.2000. SO FAR, THE STABILIZATION WITHIN THE 2.25 %, BUT SHOULD THE ECB TAKES THE ASSUMPTION FOR 2.25 % AS TOLERANCE THAN THE 1.2270 COULD BE THE MAXIMUM CEILING. THIS COULD BE MONITORED DURING THE NEXT 15 DAYS. AND, SHOULD ECB ALLOWS THE EURUSD TO 1.2270 THEN ECB IS STILL CREDIBLE BY MONETARY MEASURES AND SHOULD THE CURRENT LEVEL STRONGLY MANAGED, STABILIZED AND STERILIZED THEN ECB IS MORE CREDIBLE. THE STRENGTHENING OF THE EUROZONE ECONOMY BY THE ECB'S MONETARY POLICY'S PERFORMANCE SHALL NOT BE IGNORED AND EQUILIBRIUM ELASTICITY IS AGREED.
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ECB CREDIBILITY FOR PRICE STABILITY MANAGEMENT - WATCH OUT.
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STERILIZATION SEEMS ON TRACK