* Says: "I am at the ECB and I'll stay at the ECB"
* Appreciated FX rate a risk to sustainability of recovery
* Moderate recovery expected to continue, risks to downside
* ECB Council ready to use unconventional measures if needed
By Tom Körkemeier
STRASBOURG, France, July 14 A stronger euro
exchange rate is a risk to the sustainability of the euro zone
recovery, European Central Bank President Mario Draghi said on
Monday, while stressing that he has no plans to leave the bank.
Draghi reiterated his position that the exchange rate
is not a policy target for the ECB, but said it was nonetheless
an important driver of future inflation in the euro area.
"Certainly, the appreciation that took place since mid-2012
had an impact on price stability," Draghi told the European
Parliament's Committee on Economic and Monetary Affairs in
"In the present context, an appreciated exchange rate is a
risk to the sustainability of the recovery," he added.
The ECB has faced pressure from the French government to
bring down the euro's exchange rate, as a stronger euro risks
hurting euro zone members' exports.
The head of planemaker Airbus, Fabrice Bregie, has
also called on the ECB to take steps to devalue the common
European currency to help exporters who are being hit by a
The ECB cut interest rates to record lows last month as part
of a package of measures to breathe life into a sluggish euro
Draghi said the moderate recovery in the euro zone was
expected to continue but that risks to the outlook were on the
"The Governing Council is unanimous also in using also
unconventional measures to address the risk of a too prolonged
period of too low inflation," if needed, he said.
"QE falls squarely in our mandate," he added with reference
to so-called quantitative easing, or money printing to buy
Answering a question about reports he may leave his post and
return to Italy, Draghi said he had no plans to leave the ECB.
"I am at the ECB and I'll stay at the ECB, and all the
rumours to the contrary, coming from some interested parties
perhaps, are unfounded," he said.
(Additional reporting by Paul Carrel and Maria Sheahan in
Frankfurt, and by Martin Santa in Brussels; Editing by Susan
Fenton and David Evans)