France wants to replace the U.S. dollar in international deals. The country's political and business establishment has hit out against the hegemony of the dollar in international transactions after US authorities fined BNP Paribas $9 billion for helping some countries avoid sanctions.
Michel Sapin, the French finance minister, called for a “rebalancing” of the currencies used for global payments, saying the BNP Paribas case should “make us realise the necessity of using a variety of currencies”.
Christophe de Margerie, the chief executive of Total, France’s biggest company by market capitalisation, said he saw no reason for oil purchases to be made in dollars, even if the benchmark price in dollars was likely to remain. He added that the euro would gain ground on an increase of its share in international transactions. Of course, politicians and businessmen know there is no no real alternative to the safety and liquidity of the US Treasury market, but a notable reduction can be favorable for the single currency's exchange rate. A meeting of the eurozone's finance ministers will clear the situation. The officials are going to discuss the role of the European currency in foreign trade. Many countries want to lower their dollar dependence, and when talking about a real alternative, they mention the Chinese yuan more and more often that is strongly supported by the government. The euro can compete on equal terms. China and Russia, who are interested in canceling out the U.S. influence and making the U.S. dollar the least used currency in foreign trade, have already reached some agreements.
