French finance minister raises the question of boosting the euro use in international transactions
Promoting the use of the euro in international transactions is not “a fight against dollar imperialism”, but a matter of “global balance”, Michael Sapin said.
French Finance Minister, Michael Sapin, stressed the need for euro area governments to find ways of boosting the use of the common currency in international transactions. Sapin defended his position by saying that was not “a fight against dollar imperialism” but rather issue of “global balance”. He went further by saying that he does not see the necessity aircraft to be sold in USD in European trades, providing an example of where the process can start from.
This statement comes after BNP Paribas SA was fined USD 8.97 billion by American regulators last week for making dollar transactions in countries currently suffering US sanctions. This financial blow raised serious discussions among French political and financial circles about the right of the US to impose regulations beyond its boundaries.
Euro area finance ministers are meeting in Brussels tomorrow and the issue of bolstering the euro use in international transactions will be a hot topic.
Sapin’s opinion quickly won supporters among members of the French economic elite. Christophe de Margerie, head of the French oil company Total SA, was quoted saying that it does not make sense for oil purchases to be made in dollar terms only. Although the price of a barrel is quoted in dollar terms, he explained, it is easy for a refinery to use the EUR/USD exchange rate on any given day and make transactions in euros.
