ECB releases a report highlighting an increase in the global use of the euro currency from record lows last year
The central bank noted that the rise came mainly due to volatility of US politics and concerns about rising US interest rates, while also attributing the demand for the euro to growing confidence about the future of the euro area.
In the report, the ECB highlighted a growing share in the use of the euro in global FX reserves, debt issuance, deposits and outstanding loans. Its role as an invoicing currency remains broadly stable, according to the central bank.
Just for some context, the euro's share in global FX reserves remains significantly lower than the dollar with the former only able to command a 20.7% share while the greenback still takes up 61.7% of the pie.
That said, that figure is a historic low for the dollar as countries continue to diversify into other major currencies such as the Japanese yen and the Chinese yuan as well.
