The “home bias” in financial markets has declined steadily. And, since the launch of the euro, an increasing share of foreign direct investments are taking place between euro area countries. Perhaps the most important benefit of the euro has been the success of the monetary policy framework for the 16 – soon to be 17 – countries participating in the common currency.
2  BIS Review 29/2003  As you well know, since mid-April there has also been a further sharp adjustment in the value of the U.S. dollar against major currencies, including ours. The magnitude and speed of the Canadian dollar’s rise has been greater than anyone had anticipated and will have a dampening influence on aggregate demand later this year and next.