During the two-year reference period (April 1998 to March 2000) the drachma traded significantly above its central rates. Exchange rate volatility declined significantly during the reference period and the significant short-term interest rate differentials also displayed a gradual decrease from September 1998 onwards.
After a gradual depreciation during most of 1999 and a revaluation of the central rate by 3.5% in January 2000, the drachma was traded on average 2.0% above its new central rate against the euro in March 2000 and came closer to the central rate in April.