It is true that before the crisis, we have seen signs of imbalances – imbalances at the global level and imbalances in local markets in the euro area and we have warned that correction could take place in an abrupt manner. But it is also true that nobody – also not at the ECB – has seen such a severe and deep crisis coming.
Central Bank sales so far this year (over $ million) are more than double those for the comparable period of last year. The Central Bank stands ready to meet all foreign exchange demands for its gross reserves which now stand at around $ billion, the equivalent of eleven months imports. With that level of reserve cushion, rumours of an impending devaluation are misguided.