America doesn’t use their own currency as a foreign currency reserve. They really don’t have much of a need for a foreign currency reserve as they have historically had a relatively stable currency and a lot of partners who are more than willing to trade in USD.
The US has around 30-40 billion in reserve currency while the EU has somewhere between 300-400 billion.
If Trump gets his wish and co-ops the Fed, they might as well start dumping USD. It’s going to be on a wild ride after that.
I would be skeptical of them “dumping” anything, but they probably would start to slowly diversify their reserves.
Right now there isn’t exactly a replacement other than gold, but that’s really impractical as a replacement for the bond market.
If only there was another currency used by a number of different countries.
What does France and Germany use? Can England back their pounds on the franc?
Are you asking if the EU can use the euro as a reserve currency?
I think I am, in the same way America uses its own currency. It’s working for them; until this years potential collapse, I mean.
America doesn’t use their own currency as a foreign currency reserve. They really don’t have much of a need for a foreign currency reserve as they have historically had a relatively stable currency and a lot of partners who are more than willing to trade in USD.
The US has around 30-40 billion in reserve currency while the EU has somewhere between 300-400 billion.