The European Central Bank has published a report showing that the euro’s international role increased moderately in 2025, with its share across key indicators of international currency use rising to around 20%. The report says this reinforces the euro’s position as the world’s second most important currency, but also warns that geopolitical fragmentation, rising gold holdings by central banks and the spread of alternative cross-border payment systems are exposing fragilities in the international monetary system. Supporting the increase, international debt issuance in euro rose by around 30% from 2024 to its highest level since the single currency was introduced, and the euro became the leading currency in the green and sustainable international bond market for the first time. Foreign portfolio inflows to the euro area were close to historical highs. The report argues that turning this momentum into a stronger global role for the euro will require deeper and more liquid capital markets, concrete progress on completing the savings and investments union, a safe and liquid pool of EU public debt through joint financing of public goods, and continued trust in the institutions and policies underpinning the currency.
European Central Bank2026-06-02
European Central Bank reports euro’s international role rose to around 20% in 2025 as euro debt issuance reached a record
The European Central Bank reported a moderate rise in the euro’s international role in 2025, with its share of key international currency use indicators at around 20%, supported by a roughly 30% increase in international euro debt issuance to a record high and strong foreign portfolio inflows. The euro became the leading currency in the green and sustainable international bond market, reinforcing its status as the second most important global currency. The report warns that geopolitical fragmentation, higher central bank gold holdings and alternative cross-border payment systems expose fragilities in the international monetary system, and argues that a stronger global role for the euro will require deeper capital markets, a larger safe pool of EU public debt and sustained trust in euro area institutions and policies.