The international role of the euro increased over the course of last year, the European Central Bank (ECB) said in its latest review of the European single currency published on Tuesday.
“Overall, based on a broad range of indicators, the international role of the euro grew moderately in 2025,” it said, adding that the euro remained the second-most important currency in the international monetary system.
Among the indicators cited by the ECB is the issuance of international debt denominated in euro, “which reached record highs during the year” and was up around 30% compared with 2024.
“The euro also became the leading currency in the green and sustainable international bond market in 2025, surpassing the US dollar for the first time, with issuances totalling almost $100 billion (around €85 billion),” it said.
Foreign portfolio inflows to the euro area had approached historical highs in 2025, with net purchases exceeding €850 billion in 2025 and near peak levels since the creation of the euro, it said.
Overall, the international role of the euro grew, with its share across various indicators of global currency use reaching around 20%.
The ECB is aiming for the single currency to have a bigger role alongside the dollar, partly as a response to the policies of current US administration. It also hopes that loans in the European Union will be cheaper on the back of a strong euro.
Exchange rate fluctuations will have fewer consequences if more trade is conducted in euros, the ECB believes.
The ECB estimates global currency reserves at 57% for the dollar and 20% for the euro. The aggressive policies pursued by the Trump administration have put the dollar’s status in doubt, it believes.
