Antwerp, March 9 (Reuters) The European Union on Tuesday said it would no longer use a U.S. dollar for its foreign exchange reserves as it moves to use the euro.

The European Central Bank will use the US dollar as its international reserve currency, a move the European Commission said was needed to fight inflation and improve trade.

The decision comes after the European Central, the European Parliament, and the European Bank of England signed a memorandum of understanding last year for the use of the euro, which has lost much of its popularity as a currency.

“The United States has been the reserve currency of the European Community for decades,” European Commission President Jose Manuel Barroso said.

“It is our hope that we will be able to continue to do so in the future, as we have been doing so now.”

The European Commission on Monday said it wanted to maintain a more stable exchange rate for its currency.

It said the euro was more stable than the U.K.’s pound sterling and the German mark.

“We have also made it clear that we expect the euro to remain a stable currency for a long time, as a major market for goods, as an important international reserve, and as a tool for the euro zone to address its financial and structural problems,” Barrose said.

The move was welcomed by British Prime Minister Boris Johnson, who called the move “historic.”

“Today, we can finally put an end to the myth that the euro is a currency that has lost its luster and will fall in value,” he said in a statement.

“Today is a victory for the future.”

The United Kingdom has been a member of the EU since 1973.

It joined the bloc in 2004.