4  BIS central bankers’ speeches  [Slide 22: EA governments bonds make 24 % of insurance companies’ and pension funds’ assets] Government bonds and other fixed-income assets represent a large share of all assets of euro area insurance companies and pension funds. Government bonds alone account for 24% of the assets. The rest are diversified across various asset classes.
[Slide 23: Exchange rate: The fall in EUR/USD since mid-2014 reflects policy divergence] The Eurosystem’s asset purchase programme, as well as divergence in monetary policy stance, have weakened the exchange rate of euro. Firstly, the increased supply of euros relative to other currencies lowers the exchange rate.