A number of countries worldwide are determined to dump the US dollar or at least to eliminate its role in international settlements. These countries are mulling over this idea for different reasons. However, there is something in common – they are driven by political and economic motives.
One of influential policymakers who stands for de-dollarization is François Villeroy, the incumbent Governor of the Bank of France. Interestingly, Mr. Villeroy is among the front-runners to become the next President of the European Central Bank. Therefore, his views on the US dollar as a universal financial tool deserves special attention. The leader of France’s central bank advocates for a global use of the single currency that will “help to protect our businesses against foreign exchange risks or legal disputes abroad.” Mr. Villeroy believes that the euro is “a key component of the European financial sovereignty.” He noted that the global role of the US dollar was “a clear advantage in the exercise of American power, while China cares about the internationalization of the renminbi”.
François Villeroy has been at the helm of the Bank of France for a few years. So, the regulator has been forging ahead with plans to challenge the status of the US dollar in favor of the euro. If he replaces Mario Draghi, he is likely to carry on with this rhetoric. However, if François Villeroy is not elected as the ECB President, France’s monetary authorities will still pose a challenge to the US dollar, thus promoting the international expansion of the euro.
