The International Role of the Euro: Geopolitical tensions, inflation and rising yields – what impact on international currencies?

Media and several global political scientists and economists have over the past one and a half years increasingly been discussing whether and how current geopolitical tensions, notably Russia’s war against Ukraine, Western sanctions against Russia, and mounting tensions between the USA, Europe and China might affect the relative weight of the USD, EUR and other currencies, notably the Chinese renminbi, as international currencies. The event will address these issues from various perspectives and will analyse what factors may lead to shifts in international leading currencies’ weight. It will also ask how the rise in US and euro area inflation rates and interest rates might come into play. 

Isabel Vansteenkiste and Maurizio Habib, ECB, will present the latest findings from the ECB’s June 2023 Annual Review of the International Role of the Euro. Linda Goldberg, Fed New York, will discuss and add a US perspective. Daniel McDowell, Syracuse University will offer findings on the workings, impact and potential longer-term repercussions of US sanctions against Russia on the international role of the US dollar.

Read the full report: The international role of the euro, June 2023 (pdf)