It is not parallel to interest rate in relationship, as it is mainly determined by market supply and demand as well as expectations under the influence of interest rate policies. Inflexibility of the exchange rate regime is a major constraint on the independence of monetary policies and may lead to economic and financial fragility at the macro level.
Other countries in the euro area, however, can only place their securities with investors at relatively high interest rates. Although monetary policy can reduce this fragmentation of the markets in the euro area, it cannot completely eliminate it. This can only be done at the political level.