BoG’s Stournaras: The euro could potentially become a rival to the US dollar

The euro could potentially and gradually replace the US dollar as global reserve currency, but this cannot be done from one day to another, Bank of Greece (BoG) Governor Yannis Stournaras said in an opinion article in The Economist magazine.

As he noted, in the last eight decades the dollar has withstood wars, recessions, and economic crises largely because successive American governments preserved certain fundamental commitments, but today there is an opportunity to challenge its global dominance.

Challenging the dollar’s dominance requires a stronger, more unified, and more growth-oriented economy in the eurozone, Stournaras said, while noting that such foundations exist already. The euro is supported by a politically independent and reliable central bank that remains committed to its mission for keeping prices stable, the BoG governor added.

The euro’s failure to become a rival to the dollar lies in the fact that its share in international reserves and trade pricing is only slightly higher than the accumulated share of national currencies, which it replaced 25 years ago, Greece’s central bank chief said.

Source: pagenews.gr