Euro vs Dollar Europe's Bold Challenge to US Dominance

The world's confidence in the US dollar is shaking and this has given a rare chance to other challengers Europe for once sees an opening It wants to pick the euro against the dollar Christine Lagarde has made this pitch She is the president of the European Central Bank or the ECB She believes the euro can be a viable alternative to the dollar The ongoing changes create the opening for a global euro moment And this is a prime opportunity for Europe to take greater control of its own destiny But let's not fool ourselves It is not a privilege that will be bestowed upon us because of who we are what we stand for and the values we uphold It will have to be earned together But there's a catch here The euro cannot simply replace the dollar To challenge the dollar Europe needs to build safeguards around the euro And Lagarde realizes that too She believes that Europe needs to strengthen its security and financial structure because investors trust a currency not only on the basis of its availability of value but also on the basis on the assurance of stability And that's something that Donald Trump has struggled to understand Christine Lagarde emphasized this herself She said investors need geopolitical stability They look for reliable security partners the ones that can honor alliances Lagarde believes that Europe should build these strengths The European Central Bank wants to turn the euro into the preferred currency for global trade and that means getting businesses to trade in the euro forging new trade partnerships and creating more liquidity with central banks around the world And this couldn't have been timed better Right now 58 percent of global currency reserves are in the US dollar The euro makes up just 20 percent so this gap is still wide but it is gradually closing Lagarde's pitch comes at a time of real volatility Investors are losing confidence in the US In Trump's first hundred days in office the US dollar lost nearly 9 percent of its value Last Friday it dropped by almost one percent This was the dollar's biggest drop in 6 weeks And the reasons are quite obvious Markets are rattled Trump's politics is not helping There is uncertainty in Washington Trump's team is sending reckless fiscal signals And the U.S president is waging trade wars and slapping tariffs left right and center These moves have hurt market confidence and the dollar's stability So Europe is looking to take advantage but they're not the only ones

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