$ETH The leaders of the ECB promote the euro as the alternative to the US dollar.
Senior officials from the European Central Bank (ECB) are promoting the euro as an alternative to the US dollar. In a recent statement, ECB Vice President Luis de Guindos noted that the euro had a real chance of becoming a reserve currency in a few years if greater integration occurs. He said:
"I don't think we are in a position to be an alternative as a reserve currency, but I believe we are in the best position to become one in a few years."
Christine Lagarde, President of the ECB, also pointed out that the euro was in the best position to become an alternative to the US dollar. She cited the fact that the euro rose during Donald Trump's tariff tantrum in April. Historically, the US dollar spikes when there are elevated risks. Lagarde said:
"At a time when we see that the rule of law, the judiciary system, and trade norms are being questioned in the United States, where uncertainty is permanent and renewed daily, Europe is rightly perceived as an economically and politically stable area, with a strong currency and an independent central bank.
Still, even though confidence in the US dollar is waning, finding an alternative will not be easy. Data shows that the US dollar accounted for approximately 57% of all foreign exchange reserves worldwide. It is followed by the euro at 20%, and the Chinese yuan and Japanese yen with less than 5%.
The US dollar is also the dominant player in global trade, where most international trade is conducted using it.
