introduction of the euro greatly improved the functioning of euro financial markets. This paper investigates whether euro financial … markets have developed sufficiently to facilitate the emergence of the euro as a reserve currency on par with the US dollar …. We find that the liquidity and breadth of euro financial markets are fast approaching those of dollar markets, and as a …

dollar and euro over the period 1999-2004. Whether the euro might in the future rival or surpass the dollar as the world …: the euro. This paper econometrically estimates determinants of the shares of major currencies in the reserve holdings of … the world's central banks. Significant factors include: size of the home country, inflation rate (or lagged depreciation …