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2026-02-17 00:49:00
[Commercial Bank: ECB's Plan to Expand Euro Liquidity Facility Unlikely to Affect Dollar's Global Dominance] Commerzbank's Nguyen Thu Lan stated in a report that the European Central Bank's plan to expand its euro liquidity facility is unlikely to affect the dollar's global dominance. The ECB announced on Saturday that it would expand its euro repurchase program to almost all foreign countries to enhance the euro's international status. However, Nguyen Thu Lan noted that during periods of stress in global financial markets, the demand for the dollar far exceeds that for the euro. She said that most global trade is settled in dollars, meaning companies need dollars to repay debts. This is why central banks hold a large portion of their foreign exchange reserves in dollars to maintain their economies' foreign trade during crises. "The currency that dominates international payments also dominates everything else."
