Published by Global Banking & Finance Review®
Posted on September 3, 2025
3 min readLast updated: January 22, 2026
Add as preferred source on GoogleThe euro is showing signs of strengthening its global role, with increased use by bond issuers and investors. ING highlights the need for European reforms to support this trend.
LONDON (Reuters) -There is early evidence that bond issuers and investors are making greater use of the euro, ING said in a report published on Wednesday to mark 100 days since ECB chief Christine Lagarde said the euro could become a viable dollar alternative.
The report stressed that Europe needs to deliver credible reforms to support the euro's role as a global currency and that competing against the dollar would not be easy.
Here are the ING report's key findings:
WHAT THE REPORT SAYS
Although the euro's share of global FX reserves held steady in Q1 at around 20%, year-on-year trends are positive and smaller reserve managers are emerging as new sources of demand for the euro.
The euro's share of SWIFT international payments has stagnated so far this year but trade deals between the EU and countries such as India could see the currency used more in invoicing.
And there has been some notable bond sales in euros by emerging markets, while foreign investors are playing an important role in buying additional bonds released into the market by the ECB's pull-back from bond-buying programs.
WHY IT’S IMPORTANT
The dollar's role as the world's No.1 reserve currency has been called into question this year by heightened policy uncertainty under U.S. President Donald Trump.
With the deepest and most liquid capital markets globally, the dollar is unlikely to be replaced anytime soon.
However, there is debate about who could benefit as sentiment towards U.S. markets turns, and the euro is a key contender.
KEY QUOTE
"It will rest on European politicians to make the euro zone an attractive investment environment and for euro-denominated assets to earn their fair share of global capital."
"Now is an exceptional opportunity, but Christine Lagarde and Mario Draghi still have some work to do to convince European governments to think more boldly," ING said.
CONTEXT
Lagarde said in May that there was an opening for a 'global euro moment,' and the currency could become a viable alternative if governments strengthen the bloc's financial and security architecture.
Mario Draghi, a former ECB chief and Italian prime minister, urged the EU in a 2024 report to forge a more coordinated industrial policy, make more rapid decisions and pursue massive investments to keep pace with the U.S. and China.
BY THE NUMBERS
Foreign investors bought around 186 billion euros worth of euro debt and roughly 46 billion euros of stocks between May and June, reinforcing support for the euro, ING said.
Around 22% of euro zone government bonds are foreign-held – well below the 34% share for U.S. Treasuries – but the rise from 19% since the start of quantitative tightening shows foreigners absorbing bond sales and helping to contain a rise in yields, it added.
(Reporting by Dhara Ranasinghe; editing by Alun John and Gareth Jones)
The ING report indicates that bond issuers and investors are increasingly utilizing the euro, with positive year-on-year trends and emerging reserve managers showing new demand.
While the euro's share of global FX reserves remains steady at around 20%, it faces challenges in competing with the dollar, which is unlikely to be replaced soon due to its deep capital markets.
Foreign investors have significantly contributed to the euro market, purchasing approximately 186 billion euros in euro debt and 46 billion euros in stocks between May and June.
The report emphasizes that Europe must implement credible reforms to make the euro zone an attractive investment environment and to enhance the euro's role as a global currency.
Christine Lagarde mentioned that there is an opportunity for a 'global euro moment' if governments strengthen the financial and security architecture of the euro zone.
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