18 18  1.2 17  17 Jul. 18 18  (f) Forecast. Source: Bloomberg. Figure 6 MPR expected by the market  Interest rate differential between the US and Germany and multilateral dollar  (at December of each year, percent)  (basis points; index)  3  3  330  June MP Report 2 Fed fund  2 March MP Report  95  2 years  310  94  290  93  270 1  1  Libor  250  0  0  -1  -1 12  14  91  230  10 years  210  Euribor 10  92 DXY (right axis)  16  18  20  190 01.18 18  Source: Bloomberg. 10  90 89 88  03.18 Mar. 05.18 May  Figure 7 Nominal exchange rate and multilateral measures (1)  Parities against the US dollar (1) (2)  (index, 2017-2018=100)  (index, 2017-2018=100)  110  110 120  120  105  105 110  Latam currencies 110 (3)  MER-5 100  100 100  100  MER 95  95  90  90  80  Commodity currencies (4)  Chile  90  TCN 90 17  17 Jul. 18  80 17  17 Jul. 18 18  (1) Dashed vertical line shows statistical cutoff date of March 2018 Monetary Policy Report. (2) Uses April 2018 WEO weights. An increase denotes a depreciation of the currency with respect to US dollar.
The CRR/CRD started out after a global framework had been agreed in Basel, and this EU level framework was in turn implemented at national level in the Member States. In my day-to-day work I deal with financial stability issues on different levels if one will; As Chair of the Basel Committee for Banking Supervision the scope is global, while as Governor of the Swedish Central Bank I have a national perspective on financial stability although, admittedly, the international agenda and developments play a key role there, too. Being Chair of the Advisory Technical Committee of the ESRB and a member of its decision making body, the General Board, of course provides an EU-level perspective on macroprudential policy and systemic risk. These levels or perspectives are in my view becoming increasingly intertwined, especially after the financial crisis and the lessons learned there. Much of the agenda is indeed set at the global level first. And the way financial markets function today, this is also quite natural. We need at least minimum requirements at the global level. But we also need to strike a balance between common rules of the game in terms of minimum requirements and the need for national flexibility, not least in the EU, which to put it mildly is far from a homogenous group of countries. In fact, the economic and financial conditions differ substantially between the Member States.