European Central Bank: The euro can become an alternative to the dollar

According to the European Central Bank President, Christine Lagarde, the euro can be an alternative to the dollar if the eurozone states can strengthen its financial and security architecture.

Source: Lagarde said this during an open lecture in the center of Jacques Delor in Berlin on Monday, European Truth reports

Details: The head of the ECB stressed that the current economic policy of the United States gives rise to instability in the global markets and undermines the role of the dollar as the main reserve currency.

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“Today, the euro is the Second World Currency, which accounts for about 20% of foreign exchange reserves, compared to 58% in the case of US dollar. The growth of the international role of the euro can have positive effects on the Eurozone,” she said.

At the same time, Lagarde warned that the strengthening of the role of the euro is “far from guaranteed”, and the euro area “will have to win it.”

Among the steps that can contribute to this purpose, the President of the European Central Bank called the larger liquid capital market, strengthening legal principles and commitment to open trade.

In addition, any strengthening of the role of the euro should be accompanied by the strengthening of the Eurozone defense, Lagarda believes.

“This is due to the fact that investors, especially official ones, are also looking for geopolitical guarantees in another form: they invest in assets of regions that are reliable security partners and can adhere to alliances through rigid power,” she said.

Now the eurozone has 20 states, Croatia joined the last.

We will remind, since the beginning of the year Moldova She started using the euro as the main currency of the exchange rate, while before it was the dollar.

Also read about that As EU countries give up small coins.