European Central Bank Governing Council Member Klaas Knot said on Thursday he was not worried about the depreciation of the euro against the U.S. dollar as it had fluctuated in its lifespan.
Around 2000, 2001 (the exchange rate) was around 80 or 90 dollar cent, Knot told Dutch television programme Nieuwsuur.
I am not worried. This fits with historic exchange rate fluctuations, said Knot, who took over as president of the Dutch central bank in July 2011.
Knot, who joined the central bank from the finance ministry, warned that if a euro zone country was forced to quit the single currency it would lead to the euro's collapse.
Making an involuntary exit possible would lead to a loss of confidence. It would be as if saying to speculators: please come and speculate against us and if you continue long enough you will succeed, Knot said when asked whether it would be better to kick Greece out of the euro zone.
If speculators succeed in pushing out a country involuntarily I'm afraid it will immediately contaminate other countries which currently are in a difficult situation. It would lead to the collapse of the European Monetary Union, he said.
But Knot said he believed the euro would survive.
The connectedness between the European economies has become so large in the past 12, 13 years that it is no longer possible to dismantle the euro, Knot said.
When asked if the Dutch central bank was prepared for a possible euro collapse, Knot said: We are, as central bankers, always prepared for all scenarios, no matter how unlikely.
(Reporting by Gilbert Kreijger; editing by Sara Webb)