A high degree of exchange rate stability has been achieved, with all currencies trading either close to or at their central rates against the euro. This has facilitated the convergence process by allowing interest rates to decline while, at the same time, helping to anchor inflation expectations.
2/4  BIS central bankers' speeches  At the Central Bank of Ireland for example, our 2016 year-end risk assessment identified an additional material risk, which relates to the potential for future interest rate mismatches on the Central Bank’s balance sheet.