Conclusion My theme today has been that perceptions may be at variance with reality, but it is often perceptions that drive financial markets. Economic fundamentals can probably explain some of the euro’s weakness over the past 14 months, but not all of it. I have tried to be frank in my assessment of the way in which the euro is viewed from Asia. I hope I have not been so frank as to be discourteous. Sentiment does appear currently to be somewhat frail and the outlook uncertain. I derive no satisfaction at all from that - we are all in more or less the same boat when it comes to the vagaries of the markets. And as the manager of Hong Kong’s substantial foreign reserves, I am also held accountable for the investment decisions taken. But I am confident that sentiment will improve and our investment in the euro will come good. 7  BIS Review 23/2000
1 Article 3.3 of the Treaty on the European Union. 2 Article 127.5 of the Treaty on the Functioning of the European Union. 3 The monetary policy strategy review: some preliminary considerations, Speech by Christine Lagarde, President  of the ECB, at the “ECB and Its Watchers XXI”conference, 30 September 2020 4 www.banque-france.fr/sites/default/files/medias/documents/2020.05.25_sep_en_cl.pdf 5  See Blanchard & Summers (2020), Automatic Stabilizers in a Low-Rate Environment, AEA Papers and Proceedings, vol 110, May. 5/5  BIS central bankers' speeches