All these forces could lead to changes to some of the balances of the current international monetary system. Admittedly, despite its gradual erosion from around 65% in 2016 to 58% in 2022, the weight of the dollar is likely to remain strong in the medium and long term. vii However, many currencies, including not only the euro but also the Canadian and Australian dollars, are already being increasingly used as reserve assets. A collective move towards a more multipolar international financial system therefore seems to be underway. However, a confrontational (non-) system, or disorderly fragmentation, would only lead to instability and inefficiency. viii In order to increase monetary confidence, we also need to preserve certain virtues of the current IMS: stable, based on collective rules, market-oriented, and that offers widely accepted safe assets. Page 4 sur 6 III. The euro as a complementary asset for a more multilateral IMS We Europeans must be proactive and involved in what depends on us: the euro should play a greater international role. It is already the second most widely used currency in the world, but its current weight, around 20% by most measures, ix does not reflect its potential. As an emblem of the qualities of the type of IMS one would wish for, it is the currency of a jurisdiction with strong and stable democratic institutions, independent central banks, the rule of law and deep financial markets. It is supported by a soft power based on compliance with international rules, multilateralism and openness.
Conference "The internationalisation of the euro and the creation of the EU Capital Markets Union" - Paris, 16 June 2023 The euro as a complementary asset in a more multilateral system  Speech by François Villeroy de Galhau, Governor of the Banque de France  Page 1 sur 6 Ladies and Gentlemen, It is a great pleasure for me to be with you today for this conference on the internationalisation of the euro and the creation of the EU Capital Markets Union. I would like to warmly thank the Robert Triffin International (RTI) association and the European League for Economic Cooperation, and more particularly Bernard Snoy, for their invitation. I will begin by discussing the monetary policy decisions taken yesterday by the Governing Council (I), before getting to the heart of the matter of today's conference. Powerful forces are pushing for greater diversification within the international monetary system (II). The euro must now play its full international role, in order to assert itself as a complementary anchor towards the "creative frontier" that a truly multilateral international monetary system (IMS) would one day represent (III). I. Monetary policy We decided yesterday a 25 basis point increase, in line with the slower pace adopted early May. And our future decisions will be data driven, meeting by meeting. Hence nobody should rush to a premature conclusion about our calendar nor about our terminal rate, and the latest market volatility seems somewhat excessive.