Bank of France Governor Christian Noyer has hinted that French companies may stop using dollars in international transactions in protest of the size of the possible fine BNP Paribas may face in US.
The US authorities are pressurizing BNP Paribas to pay more than US$10 billion to settle a criminal probe into allegations that the French bank evaded US sanctions against Iran and other countries for years.
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"We could say that companies would have maximum interest to do the most possible transactions in other currencies," Noyer said on BFM television.
"Trade between China and Europe — do it in euros, do it in renminbi, stop doing it in dollars. This is an affair that will leave marks," Noyer who is also a member of the European Central Bank’s Governing Council said.
However, Noyer warned that the suspension would go on to disrupt global financial market and hit lending activities at the time when European Central Bank (ECB) is seeking funds for economy.
"I hope if there are sanctions in this area, they are limited in a way that is not dangerous," asserted Noyer.
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By GlobalDataNoyer’s remarks are the strongest yet from protesting French authorities.
French officials are concerned that a big fine and suspension of dollar trading would damage BNP’s capital base, limit its ability to lend to the French economy and lose it international customers.
