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EU Commission Hails End of Petrodollar, Welcomes ‘Multipolar Global Currency Regime’

Written on . Posted in PT Global Economy.

The European Commission has apparently publicly welcomed the end of the American petrodollar, heralding what they describe as a new “multipolar global currency regime”.

Responding to a written question from a member of the European Parliament, the European Commission has said that it welcomes the beginning of a new “multipolar” without the U.S. dollar at its centre.

“And the people of the prince who is to come
Shall destroy the city and the sanctuary.” Daniel 9:26

Formerly a cornerstone of the 21st-century world order, the petrodollar system which underwrites American economic hegemony is now under attack, with both Russia and China working to insert their own domestic currency as a viable alternative for the purchase and sale of fossil fuels worldwide.

Now, it appears that the EU may be interested in muscling in on U.S. territory in this regard too, with the European Commission saying that it would like to see its Euro currency adopted for more international energy transactions in the near future.

Writing in response to a parliamentary question on the fall of the petrodollar, EU financial services commissioner Mairead McGuinness said that she and her colleagues welcome a global shift away from the U.S. currency in favour of a more competitive landscape.

“The Commission will continue promoting the international role of the euro and, more generally, is supportive of a multipolar global currency regime which can be beneficial to improve the stability of the international financial system by limiting the impact of external and idiosyncratic monetary shocks on the economy,” the commissioner wrote on Tuesday.

“To strengthen the international role of the euro, the Commission continues to pursue targeted actions,” she continued. “As regards the use of the euro in the energy and commodities sectors, the EU will continue to discuss with key stakeholders to further increase the share of the euro.”