ECB’s Nagel: No alternative to dollar yet, euro to gain in time

European Central Bank policymaker Joachim Nagel on Wednesday emphasised the continued importance of the US dollar as a global reserve currency but said he expects the euro to gain a stronger role in the coming years.

“The dollar is very important for the world financial system; we still need a strong dollar,” Nagel told an event in Madrid.

His remarks come amid growing debate over the future of the dollar’s dominance, with some investors reducing exposure due to trade tensions and unpredictable US policy. However, others argue no viable alternative currently exists, with the eurozone seen as too fragmented to pose a serious challenge despite its economic size.

Attribution: Reuters
Subediting: M. S. Salama