Despite growing concerns over U.S. fiscal discipline, de Guindos dismissed suggestions that the euro could soon rival the dollar as the world’s dominant reserve currency. He highlighted that the euro zone lacks the necessary financial infrastructure and geopolitical weight. The dollar still accounts for about 58% of global reserves, while the euro remains stable at 20%. He also reinforced confidence in the safety of euro area gold reserves held at the New York Fed and the ongoing reliability of the U.S. Federal Reserve’s dollar backstop.
(Disclaimer: This slideshow has been sourced from Reuters)
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