The Rise of the Euro as a Global Currency

The 10th anniversary of the single European currency, celebrated in 2009, provided a good occasion to examine the developments of the euro over the decade it existed, and to assess its advances with regard to becoming a global currency. The paper comprises five parts, which include both theoretical and empirical analysis. Section I introduces the notion of a global currency, its main benefits and the economic pre-requisites for gaining this status. Section II provides an overview of the existing literature on the question of the euro’s role in the global economy and its potential international dominance. Section III introduces an empirical assessment of the euro’s world-wide use, and establishes certain predictions of potential future changes. Section IV presents a case-study of the use of the euro in both public and private spheres in two EU neighbouring countries (Ukraine and Russia) – a review having no comprehensive equivalent at the moment. Section V concludes.

Born in Mykolaiv, Ukraine. Obtained a BA in Finance from National University of Kyiv-Mohyla Academy (Ukraine), MA in Economics of International Trade and European Integration from University of Antwerp (Erasmus Mundus programme) and MA in European Interdisciplinary Studies from College of Europe. Currently works as auditor in KPMG Russia.