BERLIN Feb 8 Germany does not believe the euro
is overvalued and sees the currency's recent appreciation as
compensation for its depreciation during the euro zone debt
crisis, a government spokesman said on Friday.
Berlin believes exchange rates should reflect economic
fundamentals and devaluation is no way to boost competitiveness,
as it would make imports more expensive and harm consumers'
purchasing power, said spokesman Georg Streiter.
"The German government believes the euro is not overvalued
in a historical comparison. The new increase in value is simply
a compensation for the massive devaluation during the euro zone
crisis. It shows that market trust in the euro is returning."