The euro as a currency could take on a more dominant role on the world stage. This is what the President of the European Central Bank, Christine Lagarde, said on Monday. She believes that the dollar may be in decline and that the euro may be on the rise.
- The ongoing changes could create a "global euro moment," Lagarde said in Berlin, according to Reuters.
- The euro will not automatically gain influence. It has to earn it.
The dollar has the status of the leading reserve currency globally and is dominant as a unit for setting the price of gold, oil and other commodities. But the economic world order that the United States has led is being broken up, Lagarde said, according to the AFP news agency.
With this, she apparently refers to US President Donald Trump's tariff threats against major trading partners, which have created unrest in world markets and uncertainty about the US economy. International developments could threaten the dollar's "dominant role", she says.
At the same time, it entails major risks for the European economy, says Lagarde, but on the currency front she sees opportunities. If the euro can play a greater role internationally, it could lower borrowing costs for EU countries, and Europe will be able to "control its own destiny" to a greater extent, Lagarde believes.
However, this requires that Europe continues to advocate free trade and maintain a strong economic foundation, says the central bank governor. International cooperation in particular is under great pressure in her eyes.
- Multilateral cooperation is being replaced by zero-sum thinking and bilateral power games, she says, according to the German news agency dpa.
- Openness must give way to protectionism.
/ritzau/
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
