De-dollarization and demand for diversification open up new prospects for euro — deVere Group

According to Nigel Green, the CEO of deVere Group, the euro has its first historic opportunity to narrow the gap with the US dollar in the race for global currency dominance. The company’s head anticipates a favorable period for the European currency amid geopolitical tensions, de-dollarization, and growing demand for portfolio diversification.

Currently, the euro accounts for about 20% of global foreign exchange reserves, as noted by Investing.com experts. Meanwhile, the European Union’s overall financial health appears stronger than that of the United States, evidenced by its lower debt-to-GDP ratio. Additionally, the EU is the largest trading partner of 72 countries, compared to 44 for the US. However, the region lacks sufficient highly liquid sovereign assets to meet investor demand.

Green argues that unifying capital markets, accelerating joint public goods financing, and developing pan-European investment mechanisms could help maximize the euro’s potential. He emphasizes the EU currency now enjoys institutional support and renewed geopolitical significance.