Brussels, 16/07/2014 (Agence Europe) - In 2013, foreign demand for shares and bonds in euro reached its highest level since the outbreak of the financial crisis.
A report from the European Central Bank on Wednesday 16 July says that: “Foreign demand for euro area portfolio investments (debt securities and equities) reached its strongest level since the onset of the financial crisis in 2007, amounting to 3.7% of euro area GDP, compared with 3.0% in 2012”.
The inflows of capital into the eurozone reflected an improvement in market perception of the eurozone and investors' gradual disengagement from emerging economies.
This resulted in the value of the euro rising by 7% in nominal terms in 2013, the second largest annual rise since 1999.
The euro's share of global foreign exchange reserves decreased by 0.9% (at constant exchange rates) in 2013 to 24.4% but the euro is still the second most widely used reserve currency after the American dollar. As regards international debt markets, the share of the euro as an international financing currency declined by 1.4% (at constant exchange rates) to 25.3%. (MB)