German Export Woes Amplified by Weak Dollar, Digital Euro Seen as Potential Solution
Chancellor Friedrich Merz has sounded alarms about the depreciating dollar's impact on Germany's export-driven economy. Speaking at a Berlin press briefing, Merz noted the currency's decline creates 'a considerable extra burden' for German exporters already grappling with tight margins.
The Federation of German Wholesale, Foreign Trade and Services echoes these concerns, with President Dirk Jandura warning a strong euro makes German goods less competitive abroad. Mid-sized exporters face particular risks as they lack hedging capabilities against currency fluctuations.
Against this backdrop, Merz urged accelerated development of the digital euro. European policymakers view the CBDC as a mechanism to reduce reliance on dollar-denominated trade and payment systems.
