Keystone
The euro is the second most important currency in the world. The European single currency has defended its international role, the European Central Bank (ECB) announced in Frankfurt.
The share of the euro in official global foreign exchange reserves, adjusted for exchange rate changes, was little changed at 20.0 percent. A reserve currency is a globally important currency that is also held by other central banks.
The US dollar continues to be used by far the most. However, its share of global foreign exchange reserves fell by 2.0 percentage points to 57.8%. In view of US President Donald Trump’s erratic tariff policy and the high level of US national debt, some experts have recently questioned the role of the dollar as a safe haven.
What the ECB President says
According to the ECB, the attractiveness of the euro is underpinned by sound policies in the eurozone and strong, rule-based institutions. “Upholding the rule of law remains crucial to maintaining and possibly even strengthening global confidence in the euro,” said ECB President Christine Lagarde.
The ECB urged vigilance. Central banks are building up gold reserves at a record pace. In addition, some countries are looking for alternative, cross-border payment systems. The ECB also referred to initiatives that support the role of cryptocurrency.
Once again, the ECB called for progress in the integration of the financial and capital markets in Europe. This is particularly important in this rapidly changing environment. Only then could the European financial markets realize their full potential.
