The Dollar and the Euro as International Currencies

The thesis discusses the roles of the major international currencies in the global field. Especially, it focuses on the currency competition of the euro and the dollar. The dollar has kept its dominance for several decades and will probably remain the hegemon international currency in the nearest future.

In its twenty years of existence, the euro has not yet proved itself as a worldwide currency. This fact is investigated using a variety of metrics, including its position as an anchor or reference in exchange rate adjustments, as trade-invoicing currency, as an international reserve currency, and for its role in financial transactions. Since 1999, the euro has always been in a much smaller position than the dollar for any of these metrics. The thesis investigates and critically discusses the causes of this lack of performance.