Euro's Share in Global Reserves Declines to Record Low
According to the latest report from European Central Bank (ECB), Euro’s share in global reserves has hit lowest point ever, since the creation of the monetary union, 16 years back. By the end of fourth quarter, 2015, Euro’s share has dipped to 19.9%. This is the first time ever, Euro’s share in global foreign exchange reserve has declined below 20%. In last one year to the date of the report, Euro’s share declined by -0.6%. The share of Euro, reached the peak in 2009, with 27.7%. Similarly, Dollar’s share in reserves declined by -0.9% to 64.1% from 2014 to 2015. Dollar’s share in global reserves declined by 5% since the 2008 crisis. A large part of that is due to the foreign liquidation of dollar-denominated reserves to support domestic currencies.
ECB cited heightened uncertainty in the global economy and changing expectations over the path of monetary policy to have contributed to the decline.
Its share declined sharply from 24.4% in 2013 to 19.9% as of 2015, suggests that lower or negative rates from ECB may have been a major contributor.
Moreover, Euro’s share in global payments declined from 44% in 2012 to 29.4% as of 2016. Dollar’s share rose by 13.3% for the same period.
The material has been provided by 
