The European Central Bank has published its 25th annual review of the international role of the euro, finding that the currency's global use increased moderately in 2025 and remained second only to the US dollar. The ECB's composite measure of the euro's international role rose by 0.2 percentage points at constant exchange rates and 0.9 percentage points at current exchange rates, taking its share across a broad range of indicators to around 20%. The review highlights stronger use of the euro in international finance, sizeable foreign portfolio inflows into the euro area and signs that the euro behaved like a safe-haven currency during several risk-off episodes in 2025 and early 2026. The strongest gains came from funding markets. International euro-denominated bond and loan issuance rose by around 30% from 2024 to more than USD 1.1 trillion, bond issuance alone increased by almost 50%, and the euro became the leading currency in the green and sustainable international bond market with issuance of almost USD 100 billion. Foreign portfolio inflows to the euro area exceeded EUR 850 billion. By contrast, the euro's share of global foreign exchange reserves was broadly unchanged at about 20%, its share of BIS-measured foreign exchange trading fell to 28.5%, and trade invoicing and payment settlement indicators were largely stable. The review also points to a more fragmented backdrop, including continued strong central bank demand for gold, growing use of the renminbi in trade finance and alternative payment channels, and the expansion of mainly USD-pegged stablecoins. Looking ahead, the review argues that any further strengthening of the euro's international role depends on completing the Single Market, deepening and integrating capital markets, and reinforcing economic resilience, legal and institutional integrity and geopolitical credibility. It adds that the ECB will continue to monitor these developments and notes ongoing Eurosystem work on payments infrastructure, the potential digital euro subject to EU legislation, and the expanded EUREP liquidity facility for non-euro area central banks.
European Central Bank2026-06-02
European Central Bank review finds euro's international role grew moderately in 2025 as debt issuance hit a record
The European Central Bank’s 25th annual review finds the euro’s global use increased moderately in 2025, with its composite international role measure rising to around a 20% share across indicators and the currency showing safe-haven behaviour during several risk-off episodes. The strongest gains were in funding markets, where international euro-denominated bond and loan issuance rose by around 30% to more than USD 1.1 trillion and the euro became the leading currency in the green and sustainable international bond market, while its share in global foreign exchange reserves and trade invoicing remained broadly stable. The review stresses that further strengthening of the euro’s international role hinges on completing the Single Market, deepening capital markets and reinforcing economic and institutional resilience, and notes ongoing Eurosystem work on payments infrastructure, a potential digital euro and the EUREP liquidity facility.