Confiscation of Russian Assets Could Impact Euro’s Reserve Currency Status, FT Warns

The Financial Times reports that the Euro’s share in global reserves is currently maintained at around 20%. Around 20% of the world’s central banks’ currency reserves are denominated in euros, making it the second most held currency after the dollar, which accounts for almost 60%. However, experts warn that the potential confiscation of Russian assets could jeopardize the safety of buying European securities. ‘Confiscating Russian assets is an extremely sensitive issue,’ said Christian Kopf, from Union Investment. He noted that interfering with property rights contradicts the EU’s reputation as a ‘quiet haven’ for capital. European legal supremacy has traditionally been seen as a competitive advantage in the fight for investments, he emphasized.