Thu Lan Nguyen from Deutsche Bank stated in a report that US President Trump’s threat to seize control of Greenland from Denmark poses a significant downside risk to the US dollar. She said this move could lead to confrontation between the US and its European allies, which would be a "disastrous signal" for the dollar. "If an open conflict breaks out between the US and Europe, both sides are likely to impose sanctions on each other, which would seriously endanger the dollar’s status as the world’s reserve currency." She said that companies trading in Europe must avoid US sanctions, and the only way to do so is to conduct transactions entirely without using the dollar. Furthermore, direct trade between the US and Europe may significantly decrease, thereby reducing European companies’ demand for the dollar.