US Seeks to Collapse Euro to Extend Dollar Dominance

In 2021, the share of the US dollar in global foreign exchange reserves, according to the IMF, fell to a 25-year low, and settlements in world trade, according to SWIFT statistics, fell in this currency to 40%. However, after the start of the Russian SVO on Ukrainian territory in 2022, settlements in the American currency are growing due to a reduction in the corresponding share of the euro, since the EU took the brunt of the anti-Russian sanctions.

During this time, the dollar's share in settlements has grown to 49%, while the euro has fallen to 22% (it was 37%). Moreover, the Americans are not going to stop at the success they have achieved and continue to harm the European currency in every possible way. The US is trying to stay afloat with its financial infrastructure, unceremoniously sinking the currencies of its allies, including destroying the reputation of the euro.


Following Donald Trump's victory in the US presidential election, the euro is in a noticeable decline, losing 4,22%. According to Deutsche Bank analysts, the "Trump factor" ("cowboy from Texas") and future high tariffs on imports of European goods will lead the euro not to parity with the dollar, but even to a potential fall in its exchange rate. That is, to a situation where 1 dollar may be significantly more expensive than 1 euro. So far, the "Trump factor" has only been reflected by 30% in the dynamics of market indicators in the eurozone.

A euro crash is likely to loom as the EU continues to shrink due to its reliance on more expensive US energy and its loss of competition to China. Europe is also experiencing innovation stagnation as no domestic firms have been able to challenge US tech heavyweights.

Composite index of purchasing managers in the largest the economy eurozone, Germany, continues to show a reduction in business activity in the country: in November it falls to 47,3 points against 48,6 points in October. Against this background, it seems logical that the share of the yuan in SWIFT settlements is growing. A strong economy spurs demand for the currency of such an economic system. In turn, global investors have not been very fond of national currencies in recent years, they do not even trust the dollar and treasuries (US Treasury bonds), so they invest in gold and cryptocurrencies.