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Investing.com -- The euro is entering what could be its "golden era" with a real chance to narrow the gap with the US dollar in global dominance, according to Nigel Green, CEO of deVere Group.
"Investors should be paying very close attention: we are entering what could be the euro’s golden era," Green stated. "For the first time in its history, the euro has a serious shot at significantly closing the gap with the US dollar in global dominance."
This currency shift is occurring as confidence in the dollar’s position weakens amid increasing trade protectionism, geopolitical tensions, and growing demand for monetary diversification.
The euro currently accounts for 20% of global foreign exchange reserves—a sharp increase from its early years—and nearly 40% of global trade invoicing, despite representing a smaller portion of global GDP.
"This is telling," Green noted. "It’s not just Europe using the euro. It’s the world voting with its capital."
The euro’s path hasn’t always been upward. After the eurozone crisis, investor confidence decreased due to fragmented markets, weak growth, and political disunity that kept the currency struggling for much of the past two decades.
"But this is not the same Europe. The political resolve to integrate is stronger. Defence, energy, and digital sovereignty are rising to the top of the EU agenda. These are currency-defining shifts," Green explained.
The euro’s rise is increasingly supported by trade strength, legal stability, and monetary credibility. The EU is now the largest trading partner for 72 countries—compared to the US’s 44—which is influencing currency preferences.
Despite Europe having a stronger overall fiscal position than the US—with a lower debt-to-GDP ratio of 89% versus 124%—it has provided fewer high-quality, liquid sovereign assets that investors seek.
Green believes the next advancement will come if "Europe can accelerate joint financing of public goods—defence, green tech, digital infrastructure," which would "increase the supply of safe euro-denominated assets and challenge the dollar where it matters most: reserves and risk pricing."
Capital markets union, regulatory streamlining, and pan-European investment vehicles will be essential for maximizing the euro’s potential.
Investors are already responding, with central banks diversifying steadily over the past five years, reducing dollar allocations while adding more gold and euros.
"We’re seeing clients increasingly diversify into euro assets—not just bonds, but also currency holdings and euro-linked investment strategies," Green reported. "This is a strategic response to a multipolar currency world."
Green cautioned against overexposure to any single currency, emphasizing that the dollar isn’t collapsing but rather facing a more competitive, plural currency system.
"The euro has momentum, institutional backing, and renewed geopolitical relevance. But time and global flows wait for no one," Green concluded. "Now is the time to review currency exposures."
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