The writer is?a member of the European Central Bank’s executive board

For the last quarter of a century, the euro has been a key global currency, second only to the dollar. It has demonstrated its resilience despite the coronavirus pandemic, Russia’s war in Ukraine and the tragic conflict in the Middle East. The euro’s estimated share of international currency use stands at more than 19 per cent, a level that has remained broadly stable over the past five years.

Nevertheless, the currency’s place on the global stage cannot be taken for granted, as a report by the European Central Bank on the international role of the euro shows. More reforms are needed. China’s increasingly large role in global trade is encouraging use of its currency. By 2023, the renminbi’s share of China’s trade invoicing had risen to around one-quarter for goods and one-third for services. It is racing with the euro to become the second most used currency for trade finance.