Euro remains second most widely used currency

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.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.