“It is striking to note that, in a period of uncertainty where we would normally expect the dollar to appreciate significantly, the opposite happened: the euro appreciated against the dollar,” stated Lagarde in an interview with the French daily La Tribune Dimanche, quoted today by Bloomberg.
“It is counterintuitive but is justified by uncertainty and the loss of confidence in U.S. policies in certain segments of the financial markets,” she added.
“More than a threat, it is an opportunity,” said the French economist in a previous interview published on Saturday. “Leaders must accelerate the process of deepening the European Union,” she advocated.
“At a time when we see the rule of law, the judicial system, and trade rules being challenged in the United States, where uncertainty is permanent and renewed daily, Europe is rightfully viewed as a stable economic and political space, with a solid currency and an independent central bank,” she argued.
Lagarde highlighted the importance of the digital euro and the single capital market, stating that both are strongly supported in Europe. “There is a more powerful wave than anything I have seen in six years of office,” she described in both areas.
“We also need to harmonize supervision, as we have managed to do in the banking sector,” she added.
