Euro's global role strengthens to 20 percent in 2025

The euro's share across key indicators of international currency use grew moderately to around 20% in 2025, solidifying its position as the world's second most important currency.

This continues a gradual upward trend observed since 2014.

A significant driver was the issuance of international debt in euro, which reached its highest level since the single currency's introduction, rising by approximately 30% compared with 2024.

For the first time, the euro also became the leading currency in the green and sustainable international bond market.

Foreign portfolio inflows to the euro area were close to historical highs, reflecting increased investor confidence and demand for euro-denominated assets.

This expansion highlights the euro's growing appeal in global financial markets, particularly in sustainable finance, where its leadership underscores Europe's commitment to green initiatives and attracts capital towards environmentally friendly investments.

Despite the euro's gains, signs of fragility are emerging in the international monetary system.

Geopolitical tensions have led central banks to increase gold holdings, and some countries are developing alternative cross-border payment systems, including digital ones.

These trends underscore a growing fragmentation.

ECB President Christine Lagarde emphasized the need for European policymakers to reinforce the euro's global potential by strengthening its three pillars: economic resilience, legal and institutional integrity, and geopolitical credibility.

To achieve a truly global international currency, the euro area must develop deeper, more liquid capital markets, with concrete steps towards completing the savings and investments union.