Defend euro against China-Russia push for alternative currency: Europe’s bank chief

Next US leader also urged to weigh negative impacts of American and EU trade ‘restrictions and barriers’ on economic growth and inflation

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European Central Bank President Christine Lagarde takes part in an annual meeting of the International Monetary Fund in Washington on Tuesday. Photo: EPA-EFE

Published: 4:30am, 24 Oct 2024Updated: 5:16am, 24 Oct 2024

European Central Bank President Christine Lagarde made a case for defending the euro as Russia and China touted de-dollarisation efforts at the annual Brics summit.

At a discussion hosted by the Atlantic Council in Washington on Wednesday, the former IMF chief urged greater attention be paid to Beijing’s and Moscow’s advocacy of alternative currencies to the US dollar and euro.

“[China and Russia] will clearly attempt to push other currencies,” Lagarde said during the non-partisan think tank’s online event. “The renminbi is neck and neck with the euro on trade finance, so I think we all need to be attentive.”

“We need to listen to our customers and our competitors to see what will serve them best, with the concern of defending the currency, establishing the sovereignty as it should be by legitimate means but clearly defending finance.”

Chinese President Xi Jinping and Russian President Vladimir Putin attend a reception during the Brics summit in Kazan, Russia, on Wednesday. Their countries are considered close partners in global affairs. Photo: Reuters

Lagarde’s comments came as the International Monetary Fund and World Bank held annual meetings this week and after Chinese President Xi Jinping at an annual Brics meeting in Kazan, Russia, called on the bloc to lead “urgent” financial reforms.