Let us consider these two factors in more detail. The first factor concerns low risk, credibility and stability. Compared with the idea of stability, the strength of the euro is of lesser importance. This does not mean that the exchange rate of the euro does not constitute an element to be considered in the second pillar of the monetary policy strategy of the ECB, which consists of a broadly based assessment of the outlook for price developments and risks to stability obtained from a wide range of economic indicators, the euro exchange rate being one of them. However, the basic factor that will determine the importance of the euro as a widely used currency in the world economy, in addition to the demographic, economic and financial dimensions of the euro area, is, without a doubt, the stability of the new currency, understood as a means to maintain the purchasing power of savings.
Stability is the basic requirement for a good currency.
It is what we at the ECB want for the euro. We want a stable euro and we are convinced that, in the long term, the euro will derive strength from its stability. The stability of the euro is the basis for the confidence in and the credibility of the ECB, without which a large international role for the euro would be unthinkable. Stability is the proof of the effectiveness of the institution. Yet in order to be credible it is not sufficient for the ECB to maintain stability.