Luis de Guindos, the Vice President of the European Central Bank, stated that the euro has the potential to become an alternative to the dollar as a global reserve currency, provided that Europe enhances the integration of its efforts further.
De Guindos clarified in comments made today, Tuesday: “I don’t think we are in a position to be an alternative as a reserve currency right now, but I believe we are in a better position to become one in a few years.” He added: “If further integration takes place, I am convinced that the weight of the euro will increase globally.”
He emphasized the necessity for the world to feel that “Europe speaks with one voice, makes its decisions based on common interest, and works to close regulatory gaps to become a single internal market, and a unified capital and banking market.”
In a related context, ECB President Christine Lagarde expressed her hope that the possibility of U.S. President Donald Trump removing Federal Reserve Chairman Jerome Powell would not be a likely scenario.
In response to a question about whether Trump’s pursuit of a way to remove the central bank president poses a tangible risk to the markets, Lagarde told CNBC: “I hope it is definitely not… I hope it is not.” She indicated that she would not comment on the implications of an event she hopes is not “on the table.”