The transactions would be completely off-market and thus avoid the exchange-rate consequences of Chinese currency diversification that could otherwise be extremely uncomfortable to the United States and the euro area.
The bank said it was "concerned about the national and worldwide effects of the euro's exchange rate, including its consequences for price stability".
BRAZIL'S market for electricity is almost as volatile as its exchange rate, and with consequences that are nearly as disruptive.
As for Germany, it has a knack of coping with a high exchange rate.Fear of the consequences of break-up is the strongest reason why fiscal union seems a more probable outcome than a fragmentation of the euro.
The authors stress technical factors, such as exchange rate management, that cause unintended negative consequences from aid flows.
The immediate issue is the exchange rate.
Both countries face a lack of competitiveness as a consequence of an appreciation of the exchange rate, a recession and a large fiscal deficit (Argentina's was -4.7% of GDP and Ireland was 14.6% in 2009).
Several mushroom farms in Ireland have already taken a hammering because of the exchange rate and last month political leaders warned of the "incalculable consequences" Brexit would have on the Irish economy.
One of the beneficial consequences of QE for America is a weaker exchange rate.
I think in large part it is the consequence of a sharp rise in the real exchange rate, and what flowed from that".
"Whether intended or not, one consequence could be the increased politicisation of the exchange rate," he said, according to a text of his speech provided by the Bundesbank.
