The euro remains the second most widely used currency globally after the US dollar, according to the annual review of the international role of the euro published by the European Central Bank (ECB).

The euro’s share across various indicators of international currency use averaged around 19%.

The share of the euro in global foreign exchange reserves increased by 0.5 percentage points to 20.6% in 2021, and the share of the euro in international bond issuance rose by almost 3 percentage points to 24.6%.

The euro’s role in outstanding international loans and outstanding international deposits also increased.

However, the share of the euro in foreign exchange settlements declined.

The share of the euro in the outstanding stock of international debt securities, as well as in invoicing of extra-euro imports and exports, remained broadly stable.

“Following the pandemic, the euro area has experienced one of the steepest recoveries in its history, thanks also to ample fiscal and monetary policy support,” said ECB President Christine Lagarde.

“Now we face rising global inflation driven by higher energy costs, supply bottlenecks and normalising demand as economies reopen.

“On balance, however, these developments have not resulted in a significant change in the international role of the euro.”