Ecb Report: Euro Remains World's Second Reserve Currency

FRANKFURT, June 21 (Bernama-dpa) -- The euro has maintained its role as the world's second-most important currency behind the US dollar in a year marked by high inflation and Russia's ongoing invasion of Ukraine, reported German news agency dpa.

In 2022, the share of euros held in official foreign exchange reserves worldwide adjusted for exchange rates increased by 0.5 percentage points to 20.5 per cent, the European Central Bank (ECB) announced on Wednesday.

By far the most used reserve currency was the dollar, with a share of around 59 per cent. A reserve currency is a currency that is often used in world trade and is therefore frequently held by other central banks.

"Despite a succession of new shocks, the international role of the euro remained resilient in 2022. This resilience was noteworthy," said ECB president Christine Lagarde. "However, international currency status should not be taken for granted. This new landscape increases the onus on European policy makers to create the conditions for the euro to thrive."

Euro watchdogs have long been pushing for progress on unifying financial and capital markets within the eurozone, including the further development of the Capital Markets Union, which aims to remove bureaucratic and regulatory hurdles between countries to allow companies to more easily raise money.

The European Commission has considered plans for the project since 2015.

"Further European economic and financial integration will be pivotal in increasing the resilience of the international role of the euro in a potentially more fragmented world economy," said Fabio Panetta, a member of the ECB's executive board.

--BERNAMA-dpa