The dollar may overtake the euro: the expert revealed when this will happen.

The American economic policy may significantly affect the dollar-euro exchange rate

According to economist Oleksiy Gerashchenko, American economic policy could significantly change the exchange rate of the dollar and the euro. According to the conservative economic program of the USA (Project-2025), it is expected to reindustrialize, counter China, and protect the domestic market.

'If the USA applies various administrative and tariff measures to achieve these goals, it will lead to a decrease in the supply of European cars to the USA. As a result, European manufacturers will receive fewer dollars for sales that they need to exchange for euros,' explains Gerashchenko.

Already now there is a noticeable decrease in the value of the euro in relation to the dollar. If in September one euro cost 1.1 dollars, now its price is 1.05 dollars. It is predicted that this year parity between the dollar and the euro may occur, and at certain periods the dollar may even become more expensive than the euro.

The dollar may have a negative impact on American exports

However, it is necessary to remember the possible consequences of a strong dollar. It may complicate the situation with American exports and cause new trade conflicts. In addition, other countries, especially those whose business is oriented towards the American market, may take protective measures, which could lead to a large-scale trade war.

Gerashchenko emphasizes that such a policy corresponds to the overall trend towards deglobalization and the decrease in the influence of international institutions. In the short term, the dollar may be an attractive currency for savings, but medium-term planning is complicated by constant changes in the economic situation.

Also, the National Bank of Ukraine predicts a sharp rise in the dollar, which may exceed 45 hryvnias.