Makhlouf said the euro cannot yet replace the U.S. dollar as the world’s dominant reserve currency
Irish central bank chief and ECB governing council member Gabriel Makhlouf was speaking at a conference in France over the weekend.
Makhlouf cited Europe’s unfinished economic and financial integration.
- said that while dollar dominance may decline over time, Europe still lacks a unified fiscal structure and a safe asset comparable to US Treasuries;
- said recent euro gains against the dollar are more reflective of investor concerns over U.S. governance than a fundamental shift in reserve currency dynamics;
- urged the EU to seize the current climate of global uncertainty to strengthen its internal market, improve collective financing, and enhance its strategic autonomy.
ECB's Makhlouf
