Euro Challenges U.S. Dollar As Global Currency (Details Here)

Euro has been said to rise faster than the U.S dollars in January 2022.

Goldman Sachs who made the prediction yesterday noted that the Euro would record 4.4 percent growth while U.S GDP would record 3.5 percent growth.

Africa Investigative Magazine learned that the World Bank also forecasts a rise in Euro from January.

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World Bank noted that it sees the U.S. ahead, if only by a paper-thin margin of 0.1 percent.

In a different development, the new International Monetary Fund outlook has not issued an official statement osn this regard.

Goldman Sach in a statement said, “While the jury is still out on who will trump who for economic growth this year, there are other indicators that already show the Eurozone’s growing economic prowess and international importance.

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“The value of global payment transactions in Euro has been inching up to that of the U.S. dollar, data from the Swift international payment network shows, hinting at the increased activity around the currency.

“In October 2020, Euro transaction value even slid ahead of the U.S. dollar, and while that didn’t last long, the gap between the two currencies on the world stage has become considerably smaller since the start of the coronavirus pandemic.

“Potential reasons for this include the EU’s coordinated efforts to prop up its economy in the current crisis and its continued zero-interest fiscal policy,” it said

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It could be verified that the U.S. economy is on a reverse gear since the emergence of Joe Biden as the president of the United States.

It was also learned that the future of President Joe Biden’s “Built Back Better” Economic Agenda in the U.S is unsure.

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Goldman Sach said, “Looking strictly at payments between two actors from different currency zones – thereby excluding international payments between different Eurozone countries – the U.S. dollar still retains more of an edge as a global trade currency.

“The gap to the Euro stood at around 3 percent of transaction value in November 2021.

“Yet, economists have shown surprise at the Euro’s general international success as a strong second player since the U.S. dollar was long seen as the singular international trade currency.”