FRANKFURT: Fear of trade conflicts, sanctions and challenges to the multilateral order contributed to a rebound in worldwide use of the euro in 2018 from historic lows, the European Central Bank said on Thursday.
“It’s primarily the diversification out of the dollar which benefits the euro, because it is the second-most used currency and second-most liquid for investors,” ECB board member Benoit Coeure told reporters in Frankfurt.
Aside from commercial tensions, internal reforms within the euro zone to deepen the economic and monetary union between the members also helped, the ECB found in its annual report on the euro’s global role.
Euros made up some 20.7 per cent of global foreign currency reserves in 2018, measured at constant exchange rates — up 1.2 percentage points year-on-year.
Meanwhile, the dollar remained top dog, but fell to its lowest share since the euro’s launch 20 years ago, at 61.7 per cent. — AFP
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