The common European currency seems to be setting new records, Market Leader reports. In particular, according to Mario Draghi, who is currently presiding over the European Central Bank, the official exchange rate of the common European currency against the U.S. Dollar dropped down to the lowest level in 9 years. At this point, EURUSD is trading at 1,1520.
During his recent speech, Mario Draghi announced the ECB’s plans to start purchasing assets to the amount of 60 billion euros per month. This is going to start in March 2015. According to Masterforex-V Academy, the central bank is like to continue the asset purchase program until the rate if inflation improves so as to match or at leas come close to the inflation target set by it. the ECB expects the rate of inflation to hit the target by September 2016.
At the same time, it is expected that the total amount of money allocated for the ECB’s set purchases will be based on the donations made by other central banks of Europe to the ECB’s money pool. At this point, the money pool is expected to reach 1,1 trillion euros. The central bank is going to purchase both public and private securities. According to Masterforex-V Academy, the lifetime of the bonds chosen by the ECB is going to vary from 2 to 13 years.
