The policies of US President Donald Trump in recent weeks are undermining confidence in the US dollar. This was stated by François Villeroy de Gallo, a member of the European Central Bank (ECB) and governor of the Central Bank of France, quoted by "Reuters", reports News.bg.
According to Villeroy, the protectionism and unpredictability of the Trump administration are "negative elements" for the US economy. He stressed that despite the stated commitment to the central role of the dollar, the actions of the White House are at odds with this message.
„The great element of constancy in US policy in recent decades has been the attachment to the central role of the dollar. I believe that the Trump administration also professes this position, but it has shown serious inconsistency in its implementation. The events of recent days and weeks are working against confidence in the American currency,“ Villeroy pointed out.
He added that this situation could prove favorable for the development of the international role of the euro. “Thank God that Europe created the euro 25 years ago. It gave us monetary autonomy – we can now manage our interest rates independently of US policy, which was previously impossible”, Villeroy said.
His comments come after Trump's surprise announcement that he would temporarily pause the heavy tariffs he recently imposed on dozens of countries. At the same time, he announced increased pressure on China – a move that sent global stock markets higher.
Villeroy also said he did not expect a recession in France, despite a revised forecast by French Finance Minister Eric Lombard. Yesterday, he cut France's economic growth forecast for 2025 from 0.9% to 0.7%.