Report
The euro is now a reserve currency only for the core euro-zone countries
Since the euro-zone crisis (2010-2013), the euro is now an international reserve currency only for the core euro-zone countries: Non-European investors invest in bonds of the core countries; those of them (France, to a small degree Belgium and Finland) that have an external deficit are able to finance it without any problem; The peripheral euro-zone countries, on the other hand, have had to eliminate their external deficits, because they could no longer attract foreign capital to finance them; their government bonds are becoming increasingly domestically held : insofar as concerns peripheral-country debt, the euro is no longer a reserve currency. A very significant asymmetry has therefore appeared between the core and the peripheral euro-zone countries: the former enjoy the euro's reserve currency status, but the latter no longer, and obviously this adversely affects them.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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