ECB’s Villeroy: Volatility reflects trade wars, not currency wars

PARIS: European Central Bank policymaker Francois Villeroy de Galhau said economic and market volatility reflected trade wars rather than currency wars.

“Unfortunately, there is a risk of trade war, but a currency war would be a situation where each country is actively using its interest rates to try and gain an economic advantage. We are not at that point right now,” Villeroy, who also heads the Bank of France, told regional French newspapers in an interview published on Friday.

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“The current currency moves are more of a reflection on revisions to economic forecasts,” added Villeroy, who is also head of the Bank of France.