Brussels, 11/01/2005 (Agence Europe) - In its fourth publication on the use of the euro by non-resident economic actors on the international markets, the European Central Bank (ECB) has confirmed the trends identified in its previous studies. Between mid-2003 and mid-2004, international usage of the euro seems to have been relatively stable and has seen a slight increase as an invoicing currency. The international role of the euro, however, remains characterised first of all by a regional dimension, as its use is predominant in countries bordering the euro zone. Furthermore, a large part of supply and demand in international bonds drawn up in euros can be imputed to euro-zone borrowers and investors.
In 2004, transactions relating to the euro represented 37% of exchanges, making the euro the second most-exchanged currency on the exchanges market, which confirms the 2001 figures. Overall, this study confirms the international predominance of European and American currencies, as the preliminary results for 2004 show that 76% of exchanges involving the single currency took place with the dollar.
The euro's share in international trade grew considerably in certain Member States of the euro zone, the report also notes. The latter make greater use of the euro for their exports than for imports, and of the exports, it is used more for the invoicing of goods than for the invoicing of services. In many cases, the increased use of the euro exceeded the increase in commercial relations with the euro zone, which means that the share the euro has gained came from trade involving countries which are not members of the euro zone, the ECB highlights. From 2001 to 2003, the share of the euro in export goods invoicing rose from 46.7% to 55.3% in Belgium, from 49.2% to 52.4% in France, from 23.5% to 47.3% in Greece, from 52.7% to 58.2% in Italy, from 43.5% to 54.6% in Portugal, and from 52% to 60.8% in Spain. Between 2002 and 2003, the figure in Germany rose from 49% to 63%. Figures for export services invoicing, by contrast, vary widely from one Member State to the next, and fell in France. Imports of goods and services in the euro zone are less likely to be billed in euros, due to the weak position of the importers, who have greater difficulty in imposing their preference in terms of the currency to be invoiced in, the report states.
Use of the euro as a reserve currency has continued, particularly in Japan and other Asian emerging economies, the ECB also notes, adding that the euro's share in official currency reserves has grown from 19.3% in 2002 to 19.7% in 2003. By way of comparison, the dollar alone represents almost two thirds of the reserves of central banks the world over. As an intervention currency, the euro was used mainly in the neighbour countries of the euro zone. These were also the countries with the greatest use of the euro as a parallel currency, but the figures show that this concept has stabilised, the Frankfurt-based institution adds. Studies carried out by the National Bank of Austria in Croatia, Hungary, the Czech Republic, Slovenia and Slovakia show increasing demand for cash in euros, but this increase does not, however, cover the fall in demand in Deutchmarks and Austrian Schillings registered before 2002.
Lastly, the European currency's increased role on the international bonds market is also a characteristic of its international role. Factors influencing the choice of the currency in which foreign companies decide to issue their international bonds are analysed in a special section of the report. The report is available in full on the ECB's website: http: //http://www.ECB.int/pub/pdf/other/euro-international-role2005en.pdf .