MNI BRIEF: ECB Should Pay More Attention To Nominal FX-Guindos

The European Central Bank should pay more attention to nominal effective exchange rates, especially with China, Vice President Luis de Guindos told an MNI Connect Event on Thursday.

The nominal effective exchange rate with the Chinese yuan will become more relevant to gauge the extent of trade diversion and its potential effects on growth and inflation, de Guindos said, noting that the Chinese structure of exports is becoming very similar to that of the EU. (See MNI: PBOC To Continue Gold Buying As Dollar Hedge)