The euro currently cannot replace the dollar as the anchor of the world's financial system due to a lack of financial and economic integration among euro-using countries. Though dollar dominance may decline over the long term, Europe lacks the fiscal capacity and safe assets like US Treasuries required to mirror the American system. Recent euro appreciation against the dollar is attributed to investor concerns regarding US rule of law. The ECB advocates for Europe to strengthen its security, lift internal barriers, and increase joint financing for common goals.
The euro cannot quickly supplant the dollar as the anchor of the world's financial system as countries using it still have far to go in their financial and economic integration.
Frankly, Europe's economic system is still not formed.
Currency movements in recent months, which have seen the euro appreciate against the dollar, are more attributable to investor concerns about the rule of law in the US.
These opportunities to actually increase the standing of the EU, to strengthen its sovereignty and autonomy matter, and they need to be taken.
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