The level of international use of the Euro has remained unchanged in 2024 compared to the previous year, retaining its position as the second most important currency after the US Dollar following a latest ECB report. On the other hand, international loans issued in Euro terms have increased by 40% and by up to $900 billion more with the bulk of these loans being bonds issued by US companies.
The global share of the Australian Dollar and the Canadian Dollar in global reserve currencies has increased to a total of 9.6% combined, while a decline was reported in Chinese Yuan due to China’s ongoing economic crisis with international Chinese reserves making just 2.2% in total out of 2.4% in 2022.
The Euro accounts for at least 20% of the global currency reserves. The US Dollar accounted for up to 57.8% of the total reserves down by 2% from the previous year. The Japanese Yen comes third with up to 5.8& of the share.
The report also includes a critical review of Tether and its US dollar Treasury-backed stablecoins, allegedly outlining several reasons why a digital euro could be more effective for credit and banking than stablecoins. The report cites that stablecoins could bring volatility to the credit markets and effectively reduce the availability of credit.
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