ECB: The international role of the euro

05 June 2018

The ECB has published the 17th annual review of the international role of the euro. It is an interim version that presents a concise overview of developments in the use of the euro by non-euro area residents.

This report covers developments in 2017 and early 2018. This period was characterised by a strong and broad-based growth momentum in the euro area economy as well as by the continued impact of the ECB’s asset purchase programme. These developments affected the international role of the euro, which showed signs of broad stabilisation, although developments differed across dimensions of the international use of the euro. On the one hand, the shares of the euro in global payments and in global foreign exchange settlements increased. Portfolio inflows into euro area equities were strong. On the other hand, a number of indicators tracked in this report show the share of the euro as having declined. This was particularly the case for outstanding amounts of international debt securities and international deposits and for shipments of euro banknotes to destinations outside the euro area. Overall, the euro remained unchallenged as the second most important currency in the international monetary system. The international role of the euro is primarily determined by market forces. The Eurosystem neither hinders nor promotes the international use of the euro. At the same time, the ECB will continue to monitor developments and publish information on the international role of the euro on a regular basis.

Full report

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