Right, but to my knowledge target2 doesn't preclude the use of other exchanges. It wouldn't be illegal for say, Spain to convert to dollars and then back to Eu

Right, but to my knowledge target2 doesn't preclude the use of other exchanges. It wouldn't be illegal for say, Spain to convert to dollars and then back to Euros when selling to France. I'm having a hard time finding the statistics I read a few years back, and maybe things have changed or I was misinformed, but I remember reading while most internal EU trade is settled in Euros a significant amount was still settled in dollars for a variety of reasons (legacy systems and such).