More payments in euros but greenback still rules

FRANKFURT

Jun 6, 2018-

The euro almost matched the dollar with a more than one-third share of global payments in 2017, the European Central Bank said Tuesday, but still lags the greenback in other measures of worldwide heft. The unit accounted for just below 36 percent of global payments in 2017, continuing its upward trend from 2015 lows and inching closer towards the greenback’s near-40-percent share, the ECB said in a regularly-published report. Most of the euro’s gains came at the expense of the dollar, as payments in other major currencies like the British pound and Japanese yen were roughly stable while the Chinese renminbi declined from already low levels. The single currency also enlarged its share of foreign exchange settlements, while foreign investments in euro-area companies were “as high as they ever have been since the advent of the euro in 1999,” the ECB found. On the other hand, several vital indicators fell, including the proportion of international debts denominated in euros and the unit’s share of central banks’ foreign currency reserves, adjusted for exchange rate effects. Averaging out a selection of gauges it tracks, the ECB economists found that “the share of the euro across a broad range of indicators... remained close to historical lows” after a long slide from its early-2000s peak. (AFP)

Published: 06-06-2018 08:03

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