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Policy & Regulation

Brussels to challenge dollar as benchmark energy currency

The European Commission wants more energy contracts to be denominated in euros, but it will face an uphill struggle to challenge the benchmark status of the US dollar The European Commission wants more energy contracts to be denominated in euros, but it will face an uphill struggle to challenge the benchmark status of the US dollar.
By Andreas Walstad 22 February 2019 Europe & Russia / Policy & Regulation 0 33970
A euro coin and a dollar bill. The commission is concerned about exchange-rate risks. (PA)

Stakeholders have until 31 March to give feedback on a consultation initiated by the European Commission that aims to win support for strengthening the role of the euro in bilateral energy contracts.

The EU bloc of 28 nations is the world’s largest importer of oil and gas, but only 20% of its import contracts are priced in euros. The United States dollar remains the benchmark currency for contracts to import oil, coal, LNG and – albeit to a lesser extent than before –...