Euro challenges US dollar dominance in international currency hierarchy.
The article discusses how the euro's introduction in 1999 could change the global currency hierarchy. The euro area is similar in size to the US in terms of GDP and even surpasses it in world trade. Factors like economic activity, financial market size, stability, and history play a role in a currency's international status. The integration and growth of European financial markets are crucial for the dollar's global role, but the dominance of international currencies changes gradually over time.