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When the Bundesbank president talked about the Italianlira, it had caused problems a few months back, one official commented.
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The Italianlira is worth 28 centimes of the sterling and 21 of the dollar.
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EUROPEAN Union finance ministers reached a compromise late yesterday to allow the Italianlira re enter the exchange rate mechanism of the European Monetary System.
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But the 1973-74 oil price crisis forces out sterling, the Italianlira and French franc under pressure from the dollar.
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THE Italianlira has gained ground as markets reacted positively to the currency's return to the ERM and to hopes of early interest rate cuts.
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In consequence, the pound closed yesterday 10.53 per cent above the Italianlira, the weakest currency in the ERM grid.