New Bank of France chief calls for euro to rival dollar

Emmanuel Moulin, in his first remarks as Bank of France governor, called Monday for greater European monetary sovereignty and euro-denominated safe assets.investing
He pointed to concerns over Federal Reserve independence and less predictable U.S. policymaking as factors drawing global investors toward the euro.luxtimes
The ECB’s latest report found the euro’s international role grew moderately in 2025, with euro-denominated debt issuance hitting a record high.bancaditalia

ECB’s Moulin Sees Opportunity to Strengthen Euro’s Global Standing

Emmanuel Moulin, in his first public remarks as governor of the Bank of France and a member of the European Central Bank’s Governing Council, said on Monday that there is a “clear opportunity” to boost the euro’s international status, calling for greater European monetary and payments sovereignty.investing

Doubts Over the Fed Open a Window

Moulin pointed to doubts over the Federal Reserve’s independence and less predictable U.S. policymaking as factors drawing global investors toward the euro. He also argued that Europe needs to develop euro-denominated safe assets to underpin the currency’s expanded role.luxtimes

The remarks come as the ECB published its annual report on the euro’s international role in early June, which found that the currency’s global standing “increased moderately in 2025,” with international debt issuance in euros reaching its highest level since the single currency’s introduction.bancaditalia

Concerns about Fed independence have recurred throughout 2025 and into 2026. A Department of Justice criminal investigation into Fed Chair Jerome Powell earlier this year reignited debate about U.S. central bank autonomy, while an unusually divided 8-4 vote at the Fed’s April meeting underscored growing internal tensions. ECB policymaker Olli Rehn warned last year that erosion of Fed independence could drive up inflation and destabilize markets.reuters

A Contested Appointment

Moulin, 57, was confirmed by French lawmakers on May 20 after a contentious hearing in which 52.7% of parliamentarians voted against his nomination — short of the three-fifths threshold needed to block the appointment. A former chief of staff to President Emmanuel Macron, Moulin assured senators he would uphold the central bank’s independence.lemonde

His predecessor, François Villeroy de Galhau, had already begun laying groundwork for an expanded international euro role, advocating for stronger European liquidity frameworks and trade agreements as pillars of currency strength. Moulin’s comments suggest continuity on this front, while sharpening the contrast with Washington’s political turbulence around monetary policy.youtube