As published on plenglish.com, Tuesday 9 June, 2020.
Berlin, Jun 9 (Prensa Latina) Data from the European Central Bank (ECB) reported Tuesday euro consolidated in 2019 in its role as the second global currency, behind US dollar, but took first place in green bond issuance.
In 2019, the euro consolidated as the second most used currency in the world, although at a considerable distance from US dollar, which is still a global reserve currency.
But, in the field of green bond issuance, euro-designated transmissions are once again leading the market.
Specifically, according to the ECB, in 2019 45.4 per cent of the so-called green bonds worldwide were issued in euros, compared to 25.7 per cent in dollars and 28.9per cent in other currencies.
Green bonds are negotiable instrument issued by public or private institutions that are qualified to manage them and are destined to finance projects related to the environment.
The ECB highlights that residents of the European Union (EU) are the largest issuers of such green bonds and the leadership of euro in this segment accounts for around 30 percent of debt.
Given this position, ¨the consolidation of the EU role as a global hub for green finances could strengthen the euro as the currency of choice for sustainable financial products, bolstering its international role,¨ the ECB reported.