December 4, 2018 / 11:44 AM / 8 days ago

European Commission looking to strengthen euro's reserve currency muscle

U.S. dollar and Euro notes are seen in this November 7, 2016 picture illustration. REUTERS/Dado Ruvic/Illustration

LONDON (Reuters) - The European Commission has drawn up plans to boost the euro’s muscle as a global reserve currency, one of its top officials said on Tuesday.

Olivier Guersent, the Commission’s Director General that oversees much of its financial markets work said there was a “logic” in increasing the euro’s importance as a reserve currency, although it would also bring greater “responsibility”.

“Still it would be greatly beneficial if it was the case. That is why we are putting forward the recommendation of it tomorrow,” he said at a Financial Times banking conference.

He wouldn’t expand on the plans ahead of their formal launch, but one of the areas where the euro still lags the dollar, and increasingly in recent years the Chinese yuan, is the commodity and energy markets.

“Of course the ultimate state of being an international reserve currency will probably have to come with deeper reforms,” Guersent added.

Reporting by Marc Jones; editing by Josephine Mason

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