As Dollar Hegemony Wavers... ECB Sees 'Opportunity for Euro'

Korea Economic Daily

Summary

Christine Lagarde, ECB President, stated that the euro has an opportunity to emerge as a global reserve currency amid weakening trust in the dollar.
Lagarde proposed strategies such as open trade, building a single market, and independent monetary policy to elevate the status of the euro.
Currently, the dollar's share of international foreign exchange reserves has fallen to 58%, while the euro remains stagnant at about 20%.

Christine Lagarde, President of the European Central Bank (ECB), emphasized that Europe has the opportunity to elevate the euro as a global reserve currency amid weakening trust in the dollar. As the uncertain foreign policies of the Donald Trump administration shake the global monetary order, there are calls for Europe to secure strategic leadership.

In a policy speech in Berlin, Germany, on the 26th (local time), President Lagarde stated, "The changes we are facing now could be a turning point to open the 'global euro era,'" and emphasized that it is a golden opportunity to lead Europe's destiny more strongly. She added, "This opportunity is not given automatically," and stressed the need for proactive actions to elevate the status of the euro.

Currently, the dollar's share of international foreign exchange reserves is at 58%, the lowest since 1994. Meanwhile, the euro's share has stagnated around 20%. President Lagarde presented three strategic pillars to reverse this situation: 'continued commitment to open trade,' 'building a complete single market and regulatory reform,' and 'independent monetary policy.' She also mentioned the need to expand joint defense spending at the European level, pointing out that "without a reliable security system, global currency status cannot be maintained."

Reporter Lee So-hyun y2eonlee@hankyung.com