European Central Bank (ECB) policymaker François Villeroy de Galhau is advocating for a greater international role for the euro, emphasizing the need to reduce reliance on the U.S. dollar in global trade and finance. His remarks come amid growing discussions on currency diversification and economic resilience.
Villeroy, who also serves as the governor of the Bank of France, stressed that a stronger euro on the global stage would benefit European economies by enhancing financial stability and reducing exposure to external shocks. He pointed out that while the euro is already the world’s second most-used currency, its influence remains limited compared to the dominant U.S. dollar.
One of the key arguments for expanding the euro’s international presence is to strengthen Europe’s economic sovereignty. A greater role in global transactions could shield the region from currency volatility and geopolitical risks, particularly at a time when economic tensions and trade realignments are reshaping global markets.
Despite these ambitions, increasing the euro’s influence faces significant challenges. The currency’s role in international reserves and trade settlements has seen gradual growth, but structural factors—such as Europe’s fragmented financial system—continue to limit its global reach. Villeroy emphasized that policy efforts should focus on deepening the eurozone’s capital markets and improving financial integration.
The ECB has previously explored ways to boost the euro’s prominence, including digital initiatives and policies aimed at reinforcing the stability of the currency. However, analysts note that achieving a stronger position in global finance would require long-term commitment from European institutions and policymakers.
While the debate over the euro’s future continues, Villeroy’s comments highlight the growing push for Europe to play a larger role in shaping the international financial landscape. The coming years will test whether strategic efforts can translate into meaningful progress for the currency on the world stage.
