Euro-Denominated Debt Surpasses US Dollar Counterpart
The Bank for International Settlements (BIS) has released its global liquidity indicators at end-March 2026, showing robust growth in foreign currency credit denominated in US dollars and euros.
Foreign currency credit denominated in US dollars grew at an annual rate of 7.3%, reaching $14.7 trillion as of end-March 2026. In contrast, euro-denominated foreign currency debt grew at a higher rate of 12% annually, standing at €5.1 trillion.
The outstanding stock of euro-denominated foreign currency credit remains lower than its US dollar counterpart but has been growing faster in recent years. Between end-Q3 2022 and end-Q1 2026, the share of euro credit rose from 22% to 28% globally and from 14% to 18% among Emerging Market Developing Economies (EMDEs).