Europe Must Reduce Reliance on US Dollar, Says French President Emmanuel Macron

French President Emmanuel Macron says all of Europe should focus on lowering its dependence on the US dollar.

In a new interview with Politico, President Macron says European leaders should soften ties to America and focus on staying out of a potential conflict between China and the US over Taiwan.

The comments follow Macron’s three-day trip to China and a high-profile meeting with Chinese President Xi Jinping.

When it comes to global dependence on the dollar, Macron specifically says Europe should lower its need to rely on the “extraterritoriality of the US dollar.”

“If the tensions between the two superpowers heat up… we won’t have the time nor the resources to finance our strategic autonomy and we will become vassals.”

The dollar has played a central role in global trade and the global monetary system for decades, acting as the world’s sole reserve currency.

It is by far the dominant currency in the foreign exchange market and is the most widely-used currency for international transactions.

But recent international efforts have focused on ending the world’s longstanding need to engage with the dollar.

A group of economically-aligned nations known as BRICS are reportedly gearing up to launch an alternative currency that would circumvent the dollar.

The new currency could be pegged to precious metals or other hard assets.

BRICS stands for the countries of Brazil, Russia, India, China and South Africa.

A number of additional nations, including Saudi Arabia, Argentina, Iran, Indonesia, Turkey and Egypt, have reportedly expressed interest in joining the alliance.

Featured Image: Shutterstock/GrandeDuc/Andy Chipus