ECB: 17th annual review of the international role of the euro

The European Central Bank has recently published the 17th annual review of the international role of the euro, covering developments in 2017 and early 2018. Below are some key takeaways from the official press release.

• In 2017 and early 2018, the strong and broad-based growth momentum in the euro area economy as well as the continued impact of the ECB’s asset purchase programme were among the main developments affecting the international role of the euro.
• The international use of the euro showed signs of broad stabilisation.
• Developments also reflected the strengthening of the euro exchange rate over the review period.
  • Adjusting for exchange rate valuation effects, the share of the euro in global foreign exchange reserves decreased.
• Some other persistent factors continued to weigh on the international role of the euro.
  • One such factor is the increasing importance of emerging market economies as issuers of foreign currency debt since the global financial crisis.