BIS central bankers’ speeches  5  Quite apart from the fact that the relevant indicators are not pointing to major overvaluation, even despite the euro’s recent appreciation, policymakers should adhere to the tried and tested assignment of roles. Experience of politically motivated depreciations in the past has shown that these generally do not lead to any lasting gains in competitiveness.
Often, renewed depreciations are necessary. If more and more countries try to depress their own currency, this can culminate in competitive devaluation, which will only produce losers.