- French President Emmanuel Macron has urged Europe to reduce its reliance on the US dollar.
- Macron calls on European leaders to moderate their ties with the United States and stay out of a possible conflict between China and the United States.
- A group of countries known as the BRICS, is preparing to launch an alternative currency that avoids the dollar.
French President Emmanuel Macron says that all of Europe must focus on reducing its dependence on the US dollar.
In an interview, President Macron says that European leaders should moderate their ties with the United States and focus on staying out of a possible conflict between China and the United States over Taiwan.
The comments follow Macron’s three-day trip to China and a high-level meeting with Chinese President Xi Jinping.
When it comes to the global reliance on the dollar, Macron specifically states that Europe should reduce its need to rely on the “US dollar extraterritoriality”.
“If tensions between the two superpowers heat up…we won’t have time or resources to finance our strategic autonomy and we will become vassals.”
The dollar has played a central role in world trade and the global monetary system for decades, serving as the world’s sole reserve currency.
It is the dominant currency in the foreign exchange market and the most used in international transactions.
However, recent international efforts have focused on ending the world’s longstanding need to commit to the dollar.
Apparently, an economically aligned group of countries, known as the BRICS, is preparing to launch an alternative currency that avoids the dollar.
The new currency could be pegged to precious metals or other hard assets.
BRICS stands for Brazil, Russia, India, China and South Africa.
Other countries, such as Saudi Arabia, Argentina, Iran, Indonesia, Turkey and Egypt, have expressed interest in joining the alliance.
