Great news. It's really unhealthy for the global economy to be so dependant on one currency. Hopefully we see the Euro and Indian Rupee grow in prominence.
> which lost almost 1/3 of its value against the USD over the past two years
Two years ago on this day the exchange rate was ~1.2 USD per 1 EUR, today it is ~1.1, so the loss is ~9%. The current exchange rate is nothing extraordinary, and has been hit many times in the past years/decades.
Your point doesn't really stand. You cherry-pick the years around 2008 to make your point, but it shouldn't be very surprising that USD was very weak back. In the years before, and after Great Recession, the exchange rate 1.1 is very boring average.
Some currencies, like Swiss Franc may outperform EUR, but are not suitable as a large scale reserve currency.
I guess we just disagree on if the euro makes sense as a reserve currency.
It’s too volatile for my taste. It observably performs poorly during times of panic. Almost all global trade is conducted in dollars. Inflation is much worse in the EU than the US.
The ECB just follows the Fed, except worse. They maintained negative interest rates for a decade!
Can you make a case for why the euro should be a reserve currency?
When the Euro was introduced, it was set to be about the same value as $1. It's currently at $1.10 so it's actually stronger vs USD than it was initially.
