FRANKFURT — The European Central Bank says the euro has gained ground on the dollar as a global currency used for government reserves, rebounding from historic lows as U.S. sanctions deter some country’s use of the U.S. currency.
The dollar, however, remains by far the dominant international currency for trade, borrowing and reserves.
That is despite a slow diversification toward other currencies over recent years, most recently toward the Chinese yuan.
The ECB said Thursday the euro’s share of reserves rose 1.2 percentage points during 2018 to 20.7%, reversing a declining trend. The dollar’s share was 61.7%.
Factors include countries selling dollars to support their own currency, and U.S. financial sanctions such as those against Russia, which has moved some holdings to other currencies to avoid U.S restrictions.
The Associated Press