Trump's policies shake confidence in the dollar
Recent developments have undermined confidence in the American currency, according to Francois Villeroy de Galhau, the head of the central bank of France. He also addressed the potential risk of a recession in France.
On Thursday, Francois Villeroy de Galhau, head of the French central bank and a board member of the European Central Bank (ECB), stated that the recent policies of U.S. President Donald Trump have weakened confidence in the dollar. Villeroy noted that this situation could enhance the international role of the European currency. "Thank God that Europe, 25 years ago, created the euro. We have created our own monetary autonomy," he said.
Trump undermines confidence in the dollar
An essential aspect of the stability of American policy in recent decades has been the commitment to the central role of the dollar. I believe the Trump administration shares this perspective but is implementing it in a very chaotic manner. Recent developments have undermined confidence in the American currency, said the head of the central bank of France.
He added that he does not foresee a recession in France. On Wednesday evening, French Economy Minister Eric Lombard predicted that this year's economic growth would be lower than anticipated—not 0.9% GDP, but 0.7%.
