Euro's international role of was stable in 2023, says ECB

By Gokhan Ergocun

ISTANBUL (AA) — The international role of the euro was broadly stable in 2023, with various indicators showing its use stood at 19% among other currencies, the European Central Bank (ECB) revealed on Wednesday.

The ECB said in a press release that last year's ratio is close to the average of annual readings since the European common currency was introduced in 1999.

"The share of the euro in outstanding international debt securities and in invoicing of goods traded between the euro area and non-euro area countries increased," the bank also noted.

The statement quoted ECB Governor Christine Lagarde as saying: "Although the data so far show no evidence of substantial changes in the use of international currencies, we need to remain vigilant to any cracks that start appearing."

It cautioned that risks of potential fragmentation of global payment systems continue to emerge.

"Some countries increasingly sought to use units other than the major invoicing currencies for international trade as well as alternatives to traditional cross-border payment systems," it said.

"Deeper European economic and financial integration, together with enhancements in cross-border payment systems between the euro and other currencies, will be pivotal in increasing the resilience of the international role of the euro in a potentially more fragmented world," Lagarde also said.