The fall in oil prices is bringing general inflation down, but the impact also depends on the rate of the euro against the dollar. It’s hard to identify the primary cause of the fall in oil prices: the increased supply or the weak demand. It would of course be serious if prices were not pushed down by low demand.
Despite the unstable functioning of the markets since the summer, payment and settlement systems have not undergone major disruption. When financial markets experience turmoil, foreign exchange transactions are generally prone to settlement risk because of the time difference, and this can jeopardize the markets further.