Is it safe to keep your savings in euro? That’s a question many in Ireland are asking amid continued turbulence in Europe in relation to the prospect of a Greek default.
But even with market jitters, the euro is still one of the safest in the world – in fact, after the dollar, it is the world’s second largest reserve currency, the European Central Bank said in a report in mid-July.
The ECB said that 'the international role of the euro remained broadly stable during 2010 when compared with other major international currencies.'
The euro's share in the stock of world foreign exchange reserves climbed to 26.3% at the end of 2010, with a value of around $5.12 trillion, the ECB said.
This should provide some comfort to Irish savers who have been removing money on deposit and placing it elsewhere.
Only if Ireland were to leave the eurozone – which is not on the cards – should consumers worry about the euro. If this happened bank deposits would be redenominated in a new currency and deposits could be valued at 50 % of their value in euros.
ECB president Jean-Claude Trichet noted that 'the stability-oriented monetary policy of the ECB and the Eurosystem continued to underpin the international use of the euro as a credible store of value.'