ECB chief calls for stronger global role of euro

The European Central Bank (ECB) President Christine Lagarde on Monday called for a greater international role of the euro, warning that the global dominance of the U.S. dollar is facing increasing uncertainty.

Speaking at an event at Hertie School in Berlin, Germany, Lagarde expressed her concerns about the risks posed to Europe by the fragmentation of the international system.

"Multilateral cooperation is being replaced by zero-sum thinking and bilateral power plays. Openness is giving way to protectionism, and there is even uncertainty about the cornerstone of the system, the dominant role of the U.S. dollar," she said.

The ECB chief suggested that the changing global landscape could open the door for the euro to take on a greater international role.

Lagarde outlined the benefits of the euro's enhanced global role, including lower borrowing costs for governments and businesses across the euro area, stronger internal demand, and greater economic resilience. This shift, she said, would allow Europe to better control its own destiny.

Although the euro currently accounts for about 20 percent of global foreign exchange reserves, making it the world's second most-used currency after the dollar, Lagarde cautioned that the euro "will not gain influence by default."

To boost the euro's global status, Lagarde proposed three key pillars: maintaining "a steadfast commitment to open trade" supported by credible security capabilities; strengthening the euro area's economic foundation to make it a top destination for global capital; and reinforcing the legal framework by defending the rule of law.

Lagarde also noted that the U.S. dollar's share of global foreign exchange reserves has fallen to its lowest level since 1994, as gold has been accumulated by central banks worldwide.

"Over the recent years, the dollar's share in global foreign exchange reserves has indeed fallen, with its current level of 58 percent being the lowest since 1994. In parallel, central banks have been accumulating gold at a record pace," she said.

Citing previous turning points in the evolution of the international monetary system, Lagarde said current changes create the chance for a "global euro moment."

This is a prime opportunity for Europe to take greater control of its own destiny, she said.

ECB chief calls for stronger global role of euro

ECB chief calls for stronger global role of euro

Protesters filled Mexico City's Paseo de la Reforma on Saturday, rallying in solidarity with Venezuela and denouncing U.S. influence in Latin America.

The United States launched a large-scale military operation against Venezuela in the early hours of Jan 3, taking by force Venezuelan President Nicolas Maduro and his wife, Cilia Flores.

Holding numerous flags and banners while chanting slogans intermittently, a huge crowd of protesters criticized U.S. military actions against Venezuela and the unlawful control over President Maduro and his spouse, calling for respect for national sovereignty and regional peace.

"We oppose the U.S. intervention and hegemony towards the countries in Latin America. The United States has flagrantly trampled on international law, bombed Caracas and kidnapped the Maduro couple. The U.S. interventionism has become extremely blatant. We must firmly oppose and be highly vigilant, because this is not only related to a certain country, but also to all countries," said a protester.

"We demand that the United States stop interfering in Venezuela's internal affairs. The country must immediately cease its exploitation and plundering of the countries in Latin America," said another protester.

Protest erupts in Mexico City over US military operation in Venezuela