US intervened by selling euros without prior notice to ECB, European side calls it shocking and sparks controversy
Digital FinanceGeopolitics Impact 4
The Financial Times reported that US monetary authorities did not notify the European Central Bank in advance about the yen-buying, euro-selling currency intervention conducted on July 31. Some senior ECB officials reportedly took issue with the United States selling euros rather than dollars, viewing it as an unprecedented act that breaks a long-standing cooperative relationship. Japanese and US authorities carried out a coordinated intervention that day, but the ECB only learned of the US authorities' euro-selling intervention after the fact. US Treasury Secretary Bessent met with ECB President Lagarde the following day, August 1, to discuss the intervention, but European sources expressed disappointment, calling it very shocking and regrettable, and voiced concern that the close cooperative relationship between US and European central banks could be threatened.
