5 This year, against the background of the historically low interest rates in the euro area, the euro has been increasingly used as a funding currency by international borrowers. 6 And in April 2015 Mexico became the first sovereign state to issue a bond denominated in euro with a maturity of 100 years.
There are several different factors that could explain that confidence in the single currency. First of all, the euro forms an integral part of the European identity. 7 It is also considered to guarantee stability (by protecting purchasing power) and provide protection against the risk of exchange rate crises.