This is the annual review of the international role of the euro published by the ECB. It presents the main findings of the continued monitoring and analysis conducted by the ECB and the Eurosystem as regards the development, determinants and implications of the use of the euro by non-euro area residents.

This review examines in greater depth issues that have a bearing on the euro’s international role and the global currency order, including prospects for non-traditional reserve currencies and a multi-polar international monetary system.

CONTENTS
ABBREVIATIONS
FOREWORD
1 INTRODUCTION
2 MAIN FINDINGS
3 PRICE-BASED INDICATORS AND EURO AREA CAPITAL FLOWS
3.1 Price-based indicators
Box 1 The evolution of market uncertainty surrounding tiie euro exchange rate
3.2 Euro area capital flows and foreign demand for euro area assets
Box 2 Capital flows to stressed and non-stressed euro area countries
4 RECENT DEVELOPMENTS IN THE INTERNATIONAL USE OF THE EURO
4.1 The euro in global foreign eschange reserves and eschange rate anchoring
Bos 5 The accumulation of euro-denominated reserves by the Swiss National Bank
4.2 The euro in international debt markets
4.3 The euro as a parallel currency
4.4 The euro in other market segments
4.5 Results from the OeNB Euro Survey of households in central, eastern and south-eastern Europe
SPECIAL FEATURES
A: GLOBAL SAFE ASSET SHORTAGE. NON-TRADITIONAL RESERVE CURRENCIES AND THE GLOBAL FINANCIAL CRISIS
1 Introduction
2 Stylised facts on the emergence of non-traditional reserve currencies
3 Determinants of international reserve currency status
4 Empirical estimates
5 C oncluding remarks
B: THE EMERGENCE OF THE CHINESE RENMINBI AS AN INTERNATIONAL CURRENCY
1 Introduction
2 Recent developments in the international use of the Chinese renminbi
3 Determinants of the growing international use of the renminbi
4 Challenges related to the internationalisation of the renminbi
5 Implications of the rise of the renminbi for the international monetary system
6 Conclusion
C: HISTORY. GRAVITY AND INTERNATIONAL FINANCE
1 Introduction
2 Theoretical motivations
3 Empirical estimates
4 Concluding remarks
STATISTICAL ANNEX
1 The euro m global foreign exchange reserves and exchange rate anchoring
2 The euro m international debt markets
3 The euro m international loan and deposit markets
4 The euro m international trade in goods and services
5 The euro as a paraEel currency the use of euro-denominated bank loans
and deposits in countries outside the euro area

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