A number of states have taken the course of de-dollarisation in a bid to decrease dependence on the greenback and its clout on the energy sector, mainly in transactions with sanctions-stricken Iran.
When Washington imposes sanctions, other actors face a stark choice: either terminate business relations with the state under restrictions or to be banished from the global financial system.
In a bid to defy the US dollar, the European Union has set out plans to flex the euro’s muscles in such strategic sectors as energy, commodities, and aircraft manufacturing, the Financial Times reported.
According to the media outlet, the reason for that is Trump’s America First policy that has underscored the need to promote a stronger “international role” for the euro and boost the bloc’s economic sovereignty.
“In the current contest of uncertainties – trade conflicts, extra territorial sanctions by the US – the market participants are looking for alternative”, said EU economics affairs commissioner Pierre Moscovici.
The commission’s vice-president, Valdis Dombrovskis, in turn, said in Wednesday that the single currency – the euro – should reflect the political, economic and financial weight of the eurozone.
The issue of currencies used for energy transactions has been back in the spotlight due to European efforts to save the nuclear deal with Iran after the US unilaterally withdrew from it.
EU nations have struggled to circumvent Washington’s sanctions on Tehran to make sure that their companies can continue doing business with the country without facing secondary restrictions by the US.