(CNN) – Not even six months ago, eurozone watchers had been prognosticating a breakup of the 17-member bloc of nations as the euro plunged to a 25-month low against the U.S. dollar last July.
But since then, the euro has appreciated nearly 11% as its member countries battled to contain sovereign debt crises, rising unemployment and social unrest. The euro now stands at a 13-month high against the greenback.
And flying in the face of last year’s critics, Jean-Claude Trichet, the former chief of the European Central Bank told CNN’s Nina dos Santos that the euro “was never about to collapse” and that its viability as a currency is solid.
“The euro as a currency has never been put in question,” asserted Trichet while at the same time admitting the euro area’s financial stability and credit worthiness had been tested.
But as G20 finance ministers head to Moscow this week for another summit, fears of a currency war continue to loom large. Read more here to find out the details of what Trichet calls a euro "recipe for catastrophe".
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