Merz warns weak dollar is hurting German exports

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:

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:

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% and 7% respectively, as reported by Cryptopolitan. The German economy also stalled at the start of the new year.

Meanwhile, European concerns over the dollar’s rate are obviously not shared by the current administration across the Atlantic, with President Donald Trump describing the value of the American currency as “great.” A dollar buys less than 0.84 euro at the time of writing.

Merz convinced digital euro will solve the issue with dollar dependence

Friedrich Merz’s comments were also relayed by German crypto media, which highlighted the Chancellor’s statements on the digitalization of the eurozone’s single currency.

“The significant fall in the price of the U.S. dollar is causing unrest in the federal government,” BTC Echo noted in a report on Friday, informing readers about his concerns.

According to Merz, the solution to the problem with the weak dollar lies in the digital euro, the publication pointed out in an article looking for answers explaining his position.

Indeed, the head of the cabinet in Berlin and his Finance Minister Lars Klingbeil both called for reaching a swift agreement over the establishment of a digital euro.

The German officials believe the digital incarnation of the common European fiat will help consolidate its position in global markets. Quoted again by Reuters, Merz insisted:

Europe and its economic powerhouse have been trying to emancipate themselves from the American ally in more than one context and sense.

A top German representative in the European Parliament, the chair its defense committee, recently urged Berlin to repatriate over 1,200 tons of gold, which the Bundesbank currently keeps in vaults of the Federal Reserve in New York, citing the United States’ “unpredictable” behavior under Trump.

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