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German Chancellor Friedrich Merz is now seriously warried about the impact of the weaker U.S. dollar on his country’s export-oriented economy. The head of the federal government also urges for the rapid launch of the digital euro which, in his view, should reduce Europe’s dependence on America’s fiat. Germany’s Merz warns of weak dollar effects on German business The leader of the executive power in Berlin, Friedrich Merz, has joined voices warning about the negative impact of the depreciating dollar on the Bundesrepublik’s economy. Speaking at a press briefing ahead of a meeting with his coalition partners in the German capital on Wednesday, the Chancellor stated, quoted by Reuters: “I have watched the dollar rate with concern, for some time. The dollar course is a considerable extra burden for the German export economy.” Among those expressing “great concerns” regarding the steep decline of the Greenback against other major currencies, is the head of the Federation of German Wholesale, Foreign Trade and Services (BGA). “A strong euro makes German products more expensive on world markets and makes competitivity problems more severe,” Dirk Jandura told the news agency, elaborating: “Especially for mid-sized exporters with narrow margins, it’s a serious risk because they often can’t dampen exchange risks.” Germany’s economy, which is heavily reliant on exports, has faced significant challenges over the past few years. It barely started to grow in 2025 after hovering in recession territory for the previous two years. German exporters have been dealing with stiffening competition from Chinese companies, while taking a hit from the euro rise against the dollar. The latter has dropped to a four-year low amid growing global economic and geopolitical uncertainty. In early January, the BGA revealed Germany’s exports to both the People’s Republic and the United States have fallen sharply in 2025, by 10%…

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Filed under: News - @ January 30, 2026 10:30 am