In 2025, the euro’s share of international currency use grew to around 20%, driven by increased debt issuance and green bonds, amid geopolitical challenges and market fragmentation.
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.
Euro-denominated international debt issuance reached its highest level since the currency’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 advanced alternative cross-border payment systems, including digital technologies. These trends indicate growing fragmentation in the international monetary system.
ECB President Christine Lagarde emphasized that the euro’s global appeal can be enhanced if European policymakers create the right conditions and take concrete actions. The three pillars supporting the euro’s potential are economic resilience, legal and institutional integrity, and geopolitical credibility.
To evolve into a truly global currency, the euro area must develop deeper, more liquid capital markets. Completing the savings and investments union and joint financing of public goods are key steps. Upholding the rule of law and safeguarding investor trust are also crucial.
The ECB supports the euro’s international role through its institutional strength, currency issuance, and liquidity provision. Its independence and price stability mandate bolster confidence. The Eurosystem’s digital payment capabilities and the enhanced Eurosystem repo facility (EUREP) further support global market confidence.
ECB Executive Board Member Piero Cipollone stated that the ECB aims to modernize euro provision to ensure the currency remains a cornerstone of stability and supports Europe’s economic prosperity.
