EU sets out plans to curb reliance on dollar in post-Trump era
January 16, 2021
Brussels is set to warn that global markets are too reliant on the dollar as it seeks ways of curbing Europe's vulnerability to US sanctions and other financial risks, in a challenge to the currency's supremacy just days before Joe Biden's inauguration as president.
A draft European Commission policy paper seen by the Financial Times reveals the depth of EU frustration after four years of the administration of Donald Trump, whose policies underscored the dominance of the US and its currency in the global financial system.
In particular, the paper highlights the EU's difficulties in asserting its independence in the face of sanctions against Iran imposed by Mr Trump, citing them as proof of the need to "shield" the bloc from "the effects of unlawful extraterritorial application" of such measures.
"The Trump years highlighted our vulnerabilities, and we need to address those even if he's gone," said a commission official. "It's about the EU's place in the world — having the means to be an economic and financial power commensurate with our size."
Mr Trump's Iran strategy had a direct impact on financial infrastructure based in Europe, such as the Swift payment messaging system and the Euroclear and Clearstream securities depositories.
"The Trump years highlighted our vulnerabilities, and we need to address those even if he's gone"
Washington's Iran sanctions meant Brussels had to set up a special-purpose vehicle to facilitate payments for legitimate trade between the EU and the Islamic republic — a process fraught with difficulty.
"The EU should develop measures to shield EU operators in the event a third country compels EU-based financial-market infrastructures to comply with its unilaterally adopted sanctions," the paper says.
The document underscores the EU's ambition to bolster its self-reliance in a range of sectors, including finance, after the Trump administration ripped up transatlantic norms. But it is set to be adopted by the EU commission on the eve of Joe Biden being sworn in as US president on Wednesday, and as the EU pledges to seek a new era of co-operation with Washington after the acrimony of the Trump years.
Other plans in the paper that are aimed at boosting the bloc's strategic autonomy include tighter policing of foreign takeovers using the EU's new system for screening foreign direct investment.
Proposed takeovers should be vetted to see if they "would render the EU target company more prone to abide by such extraterritorial sanctions", the document says, on the basis that the acquisitions could then be blocked on national security grounds.
According to the draft, the EU also needs to find ways of boosting the role of the euro in light of lessons learnt from the Covid-19 pandemic. The paper warns that "global financial markets are too reliant on the US dollar to cushion financial tensions and stability risks".
最新的，2020年11月 发布：
London RMB Business Quarterly https://www.cityoflondon.gov.uk/ ... -business-quarterly
London RMB Foreign Exchange Market About 33% of all CNH spot trading on EBS took place during EMEA trading hours in July, the same percentage from February 2020. In Q2, 2020, the average daily CNH FX trading volume in London decreased to GBP65.6 billion, down 22.85% YoY.
The latest data shows that Cross-border RMB transactions between China and the UK surged to RMB633.6 billion between March to July 2020, up 169% year-on-year.
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