The global use of the euro was broadly stable last year after a steady decline in the aftermath of the bloc's debt crisis but hopes for increased demand failed to materialize, a European Central Bank (ECB) report indicated on Tuesday.
FILE PHOTO: The European Central Bank presents the new 50 euro note at the bank's headquarters in Frankfurt, Germany, July 5, 2016. REUTERS/Ralph Orlowski
Launched over 20 years ago, the euro has always played second fiddle to the U.S. dollar, even as the European Commission has made it a goal to boost its global role, in part to reduce the bloc’s reliance on the greenback during a period of growing global trade tensions. The euro accounted for 20.5% of global foreign exchange reserves at the end of last year, up from 20.3% a year earlier, while its share in outstanding international debt securities declined to 22.1% from 22.4%, the ECB said in an annual assessment on the currency.
“The recent COVID-19 pandemic underlines the urgency of these policies and reform efforts, which are paramount to raising the attractiveness of the euro globally,” ECB President Christine Lagarde said.
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