Investing.com — The euro’s share of global markets remained largely unchanged last year at around 20% as the the currency failed to gain ground despite expectations that unpredictable U.S. economic policy might increase its appeal as an alternative to the dollar.<\/p>\n
Investors instead shifted funds into gold and smaller currencies, , according to a European Central Bank report released Tuesday. The euro’s current market share remains below levels recorded two decades ago.<\/p>\n
ECB President Christine Lagarde said the bloc has an opportunity to increase the euro’s global role, but only if policymakers implement long-delayed financial reforms.<\/p>\n
“There is an opening for the euro to enhance its global appeal \u2013 provided that European policymakers create the necessary conditions and put words into action,” Lagarde said in the report.<\/p>\n
Lagarde outlined that the bloc needs to strengthen economic resilience, legal and institutional integrity, and geopolitical credibility to achieve this goal.<\/p>\n
The euro recorded its strongest performance in international debt issuance, which surpassed $1.1 trillion last year. This marked the highest level since the currency’s creation, supported by relatively low costs and tight margins.<\/p>\n
Both the dollar and euro lost market share to gold and non-traditional reserve currencies over the period.<\/p>\n
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