ECB president Draghi writing the forward to a report on the role of the euro 8 June 2016
- Euro rise decline was particularly the case for forex reserve holdings and issuance of foreign ccy denominated debt and cross border loans
- euro remains 2nd most important ccy in international monetary system
- main drivers of international use of euro were additional ECB measures, slower than expected pace of US rate hikes, concerns about developments in China, other emerging markets
That last list seems obvious and substantial enough to ensure on-going euro demand.
Says Draghi in the forward:
"The international role of the euro is primarily determined by market forces, and the Eurosystem neither hinders nor promotes the international use of the euro. At the same time, the ECB will continue to monitor developments and publish information on the international role of the euro on a regular basis"
Full interim report here
