Euro’s international role increased moderately in 2025

The international role of the euro increased moderately in 2025, reinforcing its position as the world’s second most important currency. Its share across key indicators of international use rose to around 20%, continuing a steady upward trend since 2014.

In 2025, euro-denominated international debt issuance reached its highest level since the euro’s introduction, increasing by approximately 30% compared to 2024. The euro also became the leading currency in the green and sustainable international bond market for the first time. Foreign portfolio inflows to the euro area approached historical highs.

However, signs of fragility are emerging. Central banks increased gold holdings amid geopolitical tensions, and some countries are developing alternative cross-border payment systems based on digital technologies. These trends indicate growing fragmentation in the international monetary system.

ECB President Christine Lagarde stated, “There is an opening for the euro to enhance its global appeal – provided that European policymakers create the necessary conditions and put words into action.” She emphasized that economic resilience, legal and institutional integrity, and geopolitical credibility are essential to reinforce the euro’s global potential.

For the euro to become a truly global currency, the euro area needs to develop deeper, more liquid capital markets. Completing the savings and investments union and joint financing of public goods are key steps. Maintaining investor trust through the rule of law and strong institutions is also crucial.

The ECB supports the euro’s international role through three main actions: ensuring price stability and independence, modernizing digital payment infrastructure, and providing backstop liquidity via the Eurosystem repo facility (EUREP). ECB Executive Board Member Piero Cipollone highlighted the ECB’s strategy to keep the euro a cornerstone of stability and support Europe’s economic prosperity.