The proposals, however, had little effect on the currency markets, where the yen strengthened again Monday.
Such comments, thinks Mr Solbes, have only a short-run effect on the currency.
economists first accepted that excessive borrowing by smaller countries using the euro — Greece and Ireland — could have a destabilizing effect on the currency zone.
Surprised economists said the latest in a step-by-step loosening of the bank restrictions should free up more money for economic activity, be popular politically, have neutral effect on the currency and please the International Monetary Fund.
Mr. Gros said Ireland's rejection of the Lisbon Treaty would have less of an effect on the currency than the French and Dutch votes because they symbolized a more sweeping repudiation of free-market policies.
A spokeswoman, who asked not to be identified in line with company policy, played down the effect of the currency move, saying, "We have few imports into China and no exports from China".
After spending $220m of its $8.7 billion of reserves in two days, on June 27th President Andres Pastrana's government in effect devalued the currency by 10%, by lowering (and widening) the band in which it trades.
South Africa's rand is, in effect, the common currency, with interest-rate changes in Pretoria instantly followed by central banks in the other four capitals.
Then the knock-on effects of the currency crisis in East Asia began to take their toll.
Rising commodity prices, stimulus measures and Australia's links to Asia have so far offset the potentially damaging effects of the currency appreciation for the country's exporters.
