Expressed in constant exchange rates (measured at the first quarter of 1994), the increase in the share of the euro is somewhat less pronounced (the share increased from 19% at the beginning of 1999 to 24% at the end of June 2006). What are the main determinants of the currency composition of foreign exchange reserves?
Economic growth in the euro area economy is subdued this year. Expectations were running far ahead of the economic recovery. The downward revision of earlier upbeat expectations has narrowed the unusually large gap between high-flying expectations and the assessment of the current situation. The business and consumer climates now suggest a slower start to a less vigorous recovery.