FRANKFURT, June 21 Reuters The euro held its ground as the world39;s second mostused currency for trade, finance and reservebuilding last year even as Russia slashed its reliance on it after being hit by sanctions, a European Central Bank report showed on Wednesday.

The dominance of the U.S. dollar and the euro which comes a distant second as global currencies is being called into question by the rise of China, the deterioration of relations between Russia and the West, and by talk of greater financial independence in emerging countries from India to Brazil.

But the ECB39;s annual report on the international role of the single currency highlighted its resilience, even though the central bank cautioned that this could change quickly.

The euro kept or even increased its share of the world39;s foreign exchange reserves 20.5, international debt 22 and loans 27.6, as well as foreign exchange turnover last year, the report said.

Its share of global payments via the SWIFT messaging system dropped from roughly 40 to 30 but this was largely to the benefit of the dollar, with only marginal gains in alternative currencies such as China39;s renminbi.

Russia slashed its use of the euro as an invoicing currency from 35 to 13 and turned to the rouble and the renminbi after being sanctioned by the European Union and other Western powers over its invasion of Ukraine in February 2022.

But the rouble39;s usage on the SWIFT system collapsed after Russian banks were disconnected…