ECB Noyer - Little M3 impact from euro changeover
GERMANY - European Central Bank Vice President Christian Noyer said Thursday that the bank doesn't expect the changeover to euro notes and coins next year to have a significant impact on M3 money supply growth.
Speaking at the ECB's press conference following its monthly rate-setting meeting, Noyer said that "the effects of the cash changeover on M3 growth should remain very limited."
"Although we have seen a significant decline in currency in circulation over recent months, currency only represents a small fraction of M3 and a large part of its decline has been reflect in higher holdings of short-term deposits with banks," he noted.
He also said that the ECB doesn't expect any "noticeable direct effects" from the cash changeover on the average price level in the euro area.
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