The President of the “European Central” puts the euro as an alternative to the dollar in the world

European Central Bank President Christine Lagarde warned on Monday that the global economic system supported by the US dollar was “cracking” and the idea of ​​turning the euro into the global reserve currency.

“The global economy has flourished on the basis of openness and pluralism supported by American leadership,” Lagarde said in a letter at “Heriti College” in Berlin.

She added that Washington’s support for an international system is based on bases and dollars as a reserve currency “that paved the way for the prosperity of trade and financial growth.”

She added that the continuation of this economic system led by the United States over the past eighty years “has proven to be a tremendous useful for the European Union … but today it is cracking”, in a clear indication of tension in global trade against the backdrop of US President Donald Trump’s threat to impose wide customs duties on major partners.

Lagarde confirmed that “multilateral cooperation is replaced by bilateral conflicts. Protection is the place of openness.”
She considered that the recent turmoil threatens the “dominant role of the US dollar,” noting that the disintegration of the global economic system “is exposing Europe to risk.”

While she pointed out that “any change in the international system leads to a decline in global trade or fragmentation to economic blocs, which harms our economy,” she stressed that the dollar’s decline would “open the door to the euro to play a greater international role.”

Lagarde explained that increasing the international role of the euro can reduce the cost of borrowing for the European Union countries and protect the bloc from fluctuations in exchange rates and “allows Europe to better control its fate.”

In order to achieve this, the European Union will need a “fixed commitment to open trade” and to enhance its position with sufficient security capabilities.

Likewise, he must strengthen his economy and defend the rule of law, she said, noting that “this is not a feature that will be given to us easily. Rather, we have to obtain it with merit.”