in 2002 to 19. 7 % in 2003. as an intervention currency, the euro was predominantly used in euro area neighbouring countries. turning to private users, the internationalisation of the euro has been most visible when it comes to the role of the euro as an international financing currency. in 2003, the share of the euro in the stock of international issues amounts to more than 30 %. a significant share of euro - denominated securities have been targeted at, and purchased by, euro area investors. in using the euro as an issuance currency, financial institutions and corporations, mainly from mature economies ( usa, uk ), have taken advantage of the greater size and liquidity provided by the increasingly integrated eurodenominated bond markets. with regard to the share of the euro in foreign exchange transactions preliminary results from the 2004 bis triennial survey, point to a notable increase in activity in foreign exchange trading. based on these preliminary results, the euro was the second most actively traded currency in foreign exchange markets worldwide, and accounted for 37 % of foreign exchange transactions, broadly the same as in 2001. globally, the euro continued to be traded predominantly against the us dollar, as 76 % of total worldwide foreign exchange activity involving the euro was with the us dollar. to sum up, the euro has been firmly and credibly established as the world ’ s second international currency during the first five years of monetary union, and its gradually increased use in several market segments highlights the degree of confidence non - euro area residents have in the euro. the ecb and the international role of the euro this brings me to the stance adopted by the eurosystem on the international role of its currency. i will start by emphasising a key characteristic of the international use of any currency : there is no “ sovereign ” power that can enforce its use. this is why the international use of a currency is, in essence, a market - driven process. the main economic factors underpinning the internationalisation are : 1. domestic stability, that is a low inflation rate, making the currency attractive as a store of value ; 2. a high degree of openness to international trade and finance. this is a key determinant for the currency ’ s use as a medium of exchange and a unit of account ; and 3. a developed financial system with deep and liquid markets offering participants a wide range of services and products in terms of borrowing, investing and hedging. against this background, the eurosystem takes a

gaston reinesch : beyond the horizon of the luxembourg presidency – a central banker ’ s perspective speech by mr gaston reinesch, governor of the central bank of luxembourg, at the national bank of poland ’ s biannual eu presidency lecture, warsaw, 27 october 2015. * * * ladies and gentlemen, dear marek, at the outset, i would like to extend my sincere gratitude to the national bank of poland and in particular to governor belka for inviting me to give the national bank of poland ’ s biannual presidency lecture, which has already earned an excellent reputation and become a wellestablished tradition. it allows to take stock of ongoing developments in the european union ( eu ) and to ponder how it could evolve in the future. i am very pleased to be given the opportunity to address such a distinguished audience here in warsaw today. i. introduction ladies and gentlemen, his royal highness, the grand - duc of luxembourg, during his state visit to poland in may last year, introduced his speech on the occasion of the dinner offered by the president of the republic of poland by stating that he was touched by an invitation to poland ’ s public radio to pay tribute to radio luxembourg, formerly called “ luxy ” by the polish people, and that he particularly appreciated the symbolism of this gesture. he stressed that existing ties between nations may not necessarily be material but very often had immaterial aspects. the fact that the grand - duchy of luxembourg became associated with values of liberty and a certain “ joie de vivre ” by the polish people was for him a source of pride. such reminiscence living in the memories and in the heart of people is priceless. the paths of our two countries did not often cross directly, but we certainly have something in common, notwithstanding our different size and history. to some extent, we share a similar past in the sense that given our geographically strategic location, we too, in a more remote past, have been the target of neighbouring countries that had expansionary ambitions. but our two countries have succeeded in overcoming the greatest challenges, including historical tragedy. the ties between luxembourg and poland have strengthened over time. today, about 5, 000 polish citizens contribute to luxembourg ’ s multicultural landscape. i am also very glad to say that i recently appointed a polish national who will soon join our legal department. the central bank of luxembourg ’ s staff is representing 20 different citizenships and more than 50 % of its staff do not have luxembourg citizenship. poland is