Lagarde said that central bank officials should remain vigilant and closely monitor developments in various regions; China is buying gold at an unprecedented speed, while Russia is supporting gold; "In terms of trade financing, the Renminbi and the Euro are evenly matched."
European Central Bank President Lagarde believes that the ECB should closely monitor the rise of emerging market currencies such as the Renminbi, and also warns that people should not take it for granted that the Euro and other currencies that have long dominated the global payment field can maintain their dominant position forever.
In an interview with the Atlantic Council, a US international affairs think tank, during the IMF and World Bank annual meetings, Lagarde stated that ECB officials are monitoring changes in the currencies used for global payments. She cautioned against complacency regarding the status of traditional major currencies such as the Euro, using the example of gold being widely adopted to illustrate that central bank officials should remain vigilant.
Lagarde said:
"The role of a currency should never be taken for granted. We must remain vigilant and cautious. There are emerging phenomena currently, especially with gold."
"We need to closely monitor developments around the world. China is buying gold at an unprecedented rate. Russia is supporting gold as it is mining a lot from underground. And there are obviously efforts to promote other currencies."
Lagarde firmly stated that she is not commenting on the United States, as the US dollar still accounts for around 50% of global transactions, while the Euro's share is close to 20%. She also said, "In terms of trade financing, the Renminbi and the Euro are evenly matched."