But the international financial consequences of the euro will be driven most importantly to the extent euro-denominated assets play a growing role in global portfolios, displacing to some degree the role of dollar-denominated assets. Such an expanded role for euro-denominated assets would depend upon and follow from the development of a broad, liquid euro securities market to rival the dollar securities markets.
This may leave them relatively sheltered from protectionist measures, especially as they do not run large external imbalances with advanced economies, the US in particular. Yet this is no cause for complacency: growth models are also changing in some large emerging economies, potentially reducing their relative demand for commodities.