Review of the international role of the euro

The European Central Bank (ECB) is today publishing its sixth annual review of the international role of the euro, focusing on developments between July 2005 and December 2006.

In the period under review, developments in the international use of the euro have differed across global markets. While the international role of the euro declined slightly in a number of market segments, it continued to show a significant degree of stability or a gradual expansion in other markets.

In particular, the use of the euro as a currency of denomination for issuing international bonds, in international loan, deposit and foreign exchange markets has decreased. Concerning the role of the euro as an invoicing currency of international trade, the evidence has been mixed.

Regarding the use of the euro by third countries, its role as a reserve currency appears to have increased slightly, whereas demand for euro banknotes and euro-denominated deposits by private agents in third countries has continued to rise gradually.

In line with the conclusions drawn in previous reports, this review finds the internationalisation of the euro to be characterised by a strong institutional and regional pattern.

The review reflects the ongoing efforts of the ECB to monitor and analyse the use of the euro by non-euro area residents in global markets and in countries outside the euro area.

Starting with this issue, the Review will be published mid-year. The change in the publication schedule has been motivated by the possibility to present end-year data for all major components of the euro’s international role, given changes in the release schedule of relevant statistics.

The review can be downloaded from the ECB's website at www.ecb.europa.eu/pub. Copies can also be obtained by writing to the ECB's Press and Information Division at the address given below.