The use of the euro as the fundingvaluta on the international markets declined during 2016 and early 2017, compared with a year ago, while the share of the euro in foreign exchange reserves recovered somewhat.
It prints the ECB in a report, ”The international role of The euro”, published on Wednesday.
”The euro remains unchallenged as the second most used international currency in an environment where the proportion of non-traditional reserve currencies are gradually increasing”, said Benoit Coeure, member of ECB’s executive board, in a comment.
Elevated non-economic risks from , in particular geopolitical developments and uncertainty regarding the economic development as the continuing impact from the ECB’s asset purchases on financial markets are among the factors that affect the euro’s international role.
The international use of the euro declined slightly in 2016-2017, albeit not in a uniform way. An exception is the share of the euro in foreign exchange reserves, which increased slightly in 2016, from of 19.4 to 19.7 per cent.
”The stabilisation of the euro share in global foreign exchange reserves provides tentative evidence that its role as the official store of value remained resilient to the various shocks that disrupted global financial markets during the period. The share of the euro in international payments also increased,” writes the ECB.
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