The European Central Bank said on Tuesday that the international role of the euro expanded moderately in 2025, reinforcing its standing as the world’s second most important currency. Across a broad set of indicators measuring international use, the euro’s share rose to around 20%, continuing a gradual upward trend that the ECB traces back to the period after Russia’s invasion of Crimea in 2014.
In 2025, issuance of international debt denominated in euros reached its highest level since the introduction of the single currency, increasing by around 30% compared with 2024. The ECB also noted that the euro became the leading currency in the international green and sustainable bond market for the first time, while foreign portfolio inflows to the euro area approached historical highs.
At the same time, the ECB highlighted several developments pointing to fragmentation in the international monetary system. Central banks continued to add to gold holdings amid persistent geopolitical tensions. Additionally, some countries have moved forward with alternative cross-border payment systems, including initiatives that rely on digital technologies.
Reflecting on these trends, ECB President Christine Lagarde said: "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." The ECB emphasized that advancing the euro’s global role will depend on steps taken within the euro area itself.
To evolve into a truly global international currency, the ECB said the euro area must develop deeper, more liquid capital markets. The institution called for concrete measures to complete the savings and investments union under an ambitious timetable, describing this as critical to the euro’s further internationalisation.
The ECB identified three ways in which it supports the euro’s international role. First, as a pillar of Europe’s institutional framework, the ECB’s independence and its price stability mandate strengthen global confidence in the currency. Second, as issuer of a currency designed for the digital payment age, the Eurosystem works to ensure central bank money remains a trusted anchor of stability amid rapid technological change. Third, as a provider of backstop liquidity to central banks worldwide, the enhanced Eurosystem repo facility increases market participants’ confidence to invest, borrow and trade in euro globally.
The ECB’s assessment presents a picture of cautious progress: measurable gains in issuance and market leadership in sustainable bonds, paired with structural challenges and geopolitical-driven shifts that are prompting some actors to seek alternatives to established international payment and reserve arrangements.
Impacted sectors: Sovereign and corporate debt markets, sustainable finance, cross-border payments infrastructure, and central banking operations.