The ECB urges an upgrade in the euro's status.

On June 2nd, European Central Bank (ECB) President Christine Lagarde affirmed that Europe needs to accelerate the unification of its capital and banking markets to enhance the international role of the euro.

The euro in Brussels, Belgium. Photo: THX/VNA

In the ECB's annual report on the international role of the euro, Ms. Lagarde noted that payment methods are becoming increasingly diversified amid rising geopolitical tensions and the emergence of technological innovations such as stablecoins, threatening to leave currencies like the euro behind.

She emphasized: "For the euro to develop into a truly global currency, the Eurozone must build a larger scale, along with deeper and more liquid capital markets."

While the report points out that the euro has acted as a safe-haven asset at times – appreciating against the USD during periods of market stress, including last year's tariff announcement by US President Donald Trump – it also notes that the euro remains far less popular than the USD internationally. Specifically, the euro accounted for approximately 20% of global foreign exchange reserves last year, ranking second only to the USD at 57%.

The report further states that the Chinese yuan is also playing an increasingly important role in global trade, although its usage remains lower than that of the euro. Notably, activity on China's Global International Payments System (CIPS) increased by more than a third around the time the conflict in the Middle East erupted.

Ms. Lagarde concluded: "Shifts in the global geopolitical landscape further underscore the importance of strengthening the euro's international role. Opportunities are opening up for the euro to increase its global appeal, provided that European policymakers create the necessary foundations and translate words into action."

Source: https://baotintuc.vn/thi-truong-tien-te/ecb-thuc-giuc-nang-tam-vi-the-dong-euro-20260602194913130.htm