Can the euro be accelerated by the US dollar as a world reserve currency?

US President Donald Trump’s tariff regime has summoned Volatility in American assets – And European officials do not hide to keep the euro to capture Floating confidence in US dollars.

A dollar This is most often in the world backup currency that takes into account Almost 60% Global currency reserves and plays an important role in trading such assets lubricate and gold. It also acts as a peg for currencies including Hong Kong dollar and Saudi Riol.

In second place, behind the green turning, this Eurowhich is about 20% of the FX international reserves.

The dollar index – which measures the green lapel from the basket of large competitors – since the beginning of the year has fallen by more than 8%. This week, the President of the European Central Bank, Christina Lagardo, said that the translation of the geopolitical landscape, which movements with these movements, gave European politicians the opportunity to increase the status of the euro.

“Multilateral cooperation is replaced by zero thinking and bilateral forces,” she said on Monday at a speech at the Green School in Berlin. “There is even uncertainty in the cornerstone of the system: the dominant role of the US dollar.”

According to her, it can “open the door to play a big international role.”

The closure of this gap was “far from guaranteed,” Lagarda said in her speech, but, however, believing that the European currency could “earn” a greater global impact on the right policy.

“For the first time, Europe must make sure that it has a solid and reliable geopolitical basis, maintaining an unwavering commitment to open trade and the basis for its safety,” she said.

“Secondly, we need to strengthen our economic fund to make Europe a major place for global capital, allowed by deeper and more liquid capital markets.

Lagarda added the euro with raised reserve currency status, adding logard, including reducing borrowing for regional governments, isolation from the volatility of the exchange rate and the security of Europe from sanctions “or other forced measures”.

“In short, it would make Europe better control its destiny,” Lagard added.

She is not the only ECB official who promotes euro opportunities as confidence in US scales. Last week Isabel Schnabel, Member of the Central Bank Executive Board, – Note The euro -zone can become a safe shelter if Trump’s tariff policy is fascinated by – giving the region a “historical opportunity to promote the international role of the euro”.

Market observers who talked to CNBC were divided into the potential of the euro to capture the dollar share in the world’s FX Holdings.

Having appeared in the “Europe Early Review” CNBC on Friday, George Bakley, the chief European economist Nomura, said he could see up for the euro when investors looked at diversification from green address.

Asked if he agreed with Lagard’s assessment about the potential of the currency, Bakley replied: “Of course, to a certain extent.”

“The dollar is still the biggest reserve currency in the world … the euro is still a long second, but it is gaining momentum quite significantly when everything happens in the US in the US,” he said. “I think there will probably be much more interest.”

Bakley said he sees the suggestions that investors may want to allocate their funds in the current environment except the dollar.

“When they think to leave the dollar, the euro is a clear choice,” he said CNBC. “This is a huge trading block, and it is clear that the euro benefits. We believe that by the end of the year the euro can increase about $ 1.20.”

On Friday morning, the euro traded about $ 1.13. From the beginning of the year, the currency has scored more than 9% to the US dollar – the transition to $ 1.20 will lead to an additional jump of about 6% of current prices.

While Buckley was optimistic about the EURO forecast, Aaron Hill, the FP Markets chief market analyst, said CNBC that the dollar dominance remained formidable.

“The euro, with the support of the significant economic weight of the European Union, faces significant obstacles,” he said. “Political fragmentation in different countries and dependence on the US security frames limit its global influence.”

Hill added that the euro restrictions are unlikely to evaporate soon.

“During the increase in US debt and switching global alliances, careful control is required, the euro lacks cohesion and achieve to challenge the dollar in the near future,” he said CNBC. “So far, Greenbek’s domination endures, unshaken.”

On Tuesday, John Plasard, a senior investment specialist in Mirabaud Group, told “Euro Early Edition” CNBC, which when the US dollar still accounts for almost 60% of global foreign currency reserves, “there was no competition for the US dollar.”