This is because, according to a remark by Mr. Jean-Claude Trichet, the former President of the ECB, the four key currencies – the U.S. dollar, the euro, the Japanese yen, and the pound sterling – “have now an affirmed global nominal anchor for the first time since the dismantling of the Bretton Woods System.”2 Currently, the actual level of inflation in the four economies deviates from 2 percent, partly as the economies are still recovering from the global financial crisis.
Nonetheless, once economic conditions are normalized, the central banks are expected to ultimately achieve price stability of around 2 percent. In this circumstance, more stable developments in foreign exchange rates may be promoted among major currencies in the long term. This may indirectly support the establishment of a more stable international financial architecture.