FX.co ★ EU announces its decision to foster euro as reserve currency

Unlike other countries that also want to destroy the US dollar hegemony, the European Union is making real attacks on the greenback. It is actively developing its plan to strengthen the euro’s position as a reserve currency. What is more, the EU is creating assets denominated in the euro, emitting special Eurobonds as well as urging its partners to use the single currency.

According to the strategy of the openness, strength, and resilience of Europe's economic and financial system, the European Union should nurture the international role of the euro “by reaching out to third-country partners to promote its use, supporting the development of euro‑denominated instruments and benchmarks and fostering its status as an international reference currency in the energy and commodities sectors.” The document also highlights the necessity to increase the effectiveness of the European sanctions against foreign states, citizens, and companies as well as to develop new measures to protect business and people from “the unlawful extraterritorial application of unilateral measures by a third country”.

The US is not mentioned in the document but it is obvious that the text tackles relations with this particular country. “This year, the Commission will develop a database – the Sanctions Information Exchange Repository – to ensure effective reporting and exchange of information between Member States and the Commission on the implementation and enforcement of sanctions”, the document reads.