ECB President Christine Lagarde said in an annual review that “the euro remains unchallenged as the second most widely used currency globally after the US dollar”. Share of Euro across various indicators of international currency was stable, averaging around 19% in 2020.
The relative resilience of the international role of the euro despite the pandemic shock stands in contrast to the significant decline observed in the wake of the euro area sovereign debt crisis. “To some extent, this development may reflect the effectiveness of the unprecedented policy support measures and coordinated approach that have prevailed in the euro area during the COVID-19 crisis,” said Lagarde.
On the topic of digital currency, Executive Board member Fabio Panetta said, “depending on its design, a central bank digital currency may support the use of a currency in cross-border payments. However, fundamental forces, such as the quality of economic policies and institutions, as well as the depth of markets, remain the most important factors for international currency status,”
