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2026-02-19 23:09:17
[ECB Governing Council Member Demarco Says: No Need to Panic if Euro Reaches 1.25 Against the Dollar] European Central Bank (ECB) Governing Council member Alexander Demarco stated in an interview with Econostream that the ECB need not be overly alarmed even if the euro/dollar exchange rate climbs further above 1.20. In the interview broadcast on Thursday, Demarco said, "Past research suggests that the equilibrium exchange rate is likely around 1.20 to 1.25 dollars, and the current rate is still some distance from that level. Even if it reaches that level, it's not the end of the world." He added that investors may be adjusting their portfolios and reducing their allocation to dollar assets due to recent events in the United States. Demarco admitted, "If we want the euro to play a stronger role on the international stage, a certain degree of appreciation may be inevitable."
