The European Union has created a plan to strengthen the international position of the euro, seeking to weaken the influence of the dollar, writes Bloomberg.
The European Union faced difficulties after the U.S. sanctions policy against Iran, which affected European banks and companies, as well as EU citizens cooperating with the Islamic Republic. The use of unilateral sanctions by third countries has seriously affected the ability of the EU and its member states to promote foreign policy goals, comply with international agreements and manage bilateral relations with sanctioned states, it said.
Europe wants to shake the dominance of the dollar because it seeks to protect its strategic interests, the paper writes. The EU intends to become a global center of “green finance,” which should strengthen the position of the euro.
The euro became the most used currency for global payments last October. It surpassed the dollar for the first time since February 2013. However, about 85 percent of all foreign exchange transactions are still conducted with the dollar, accounting for 61 percent of foreign exchange reserves.