SWIFT Data Shows Strengthening U.S. Dollar Dominance in Global Transactions
Recent data from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a global financial messaging service, reveals a strengthening dominance of the U.S. dollar in international payments.
In July, SWIFT’s FX transactions involving the U.S. dollar reached a record high of 46%, a substantial increase from a decade ago when it stood at just over one-third. This surge in dollar usage has come at the expense of the euro, which has seen its share drop significantly from its peak of 46% in 2012 to below a quarter. Notably, the Chinese yuan has also gained traction, with over 3% of SWIFT instructions in July involving the yuan, up from a mere 0.03% in 2010. This shift aligns with a broader trend of countries favoring alternative national currencies, led by the BRICS nations. While some economists predict the eventual decline of the U.S. dollar’s dominance, most do not perceive the Chinese yuan as posing an imminent threat to its hegemony.
Clever Robot News Desk 29th August 2023
