European Central Bank (ECB) President Christine Lagarde has warned that the U.S. dollar’s reserve currency status “should no longer be taken for granted.” Acknowledging de-dollarization efforts by various countries, she stressed: “New trade patterns may have ramifications for payments and international currency reserves.”
The president of the European Central Bank (ECB), Christine Lagarde, shared her thoughts on the de-dollarization trend happening across the globe in an interview with the Council on Foreign Relations last week.
Noting that the U.S. dollar has become “the international, the global reserve, and the transaction currency” with the euro in second place, she warned that “new trade patterns may have ramifications for payments and international currency reserves.” The ECB president continued: “In recent decades, China has already increased over 130-fold its bilateral trade in goods with emerging markets and developing economies, with the country also becoming the world’s top exporter … New trade patterns may also lead to new alliances.”