EU Opens Another Front In Trade War With US, Says Euro Could Become An Alternative To The US Dollar

The Euro could become a viable alternative to the US Dollar, earning the 20-nation bloc immense benefits, if governments could only strengthen the bloc's financial and security architecture, ECB President Christine Lagarde said on Monday. Unnerved by erratic U.S. economic policy, global investors have been reducing their exposure to dollar assets in recent months but many have opted for gold instead, not seeing a direct alternative. The remarks come at a time when EU is in hectic trade negotiations with the US and could also rub US President Donald Trump the wrong way. Trump has often hit out against suggestions of other currencies replacing the Dollar’s global footprint. He had also threatened BRICS, a grouping India is part of, with sanctions if it adopted a common currency.