Seizure of frozen Russian assets could impact euro’s role as reserve currency — FT

LONDON, December 6.  The possible confiscation of frozen Russian assets in the European Union could impact the euro's role as a global reserve currency, the Financial Times (FT) newspaper wrote.

Euro-denominated assets account for around 20% of foreign exchange reserves held by central banks worldwide, according to the publication. In this respect, the euro is second only to the US dollar, which accounts for almost 60% of global foreign exchange reserves. However, if the EU decides to seize Russia's frozen assets, central banks and private investors will begin to doubt whether it is worth buying European securities.

That said, although the European Central Bank has expressed skepticism about the asset seizure scheme, pointing out its risks, some EU countries that have long opposed it have changed their position and now support such a move, the paper added.