The share of the dollar in international payments last month reached its highest level – 46.46%.
The share of the dollar in international payments in July of this year rose to the highest level of 46.46% compared to more than a third ten years ago. This was reported on August 24 by Bloomberg.
The dollar is the leading currency in transactions, followed by the euro at 24.42%, the British pound at 7.63%, the Japanese yen at 3.51% and the Chinese yuan at 3.06%.
Global banks use SWIFT or the Community for Worldwide Interbank Financial Telecommunications to communicate with each other and facilitate interbank foreign exchange agreements.
The information collected by SWIFT – for example, around 200 million confirmations of foreign exchange transactions annually – has provided insight into global flows since the consortium began collecting them in 2010.
Although the SWIFT data does not cover the entire foreign exchange market, it supports the idea that the role of the dollar in international finance remains stable – although some efforts are emerging for greater diversification, for example, from in the BRICS countries.
The increase in the dollar’s share of SWIFT transactions was largely driven by the euro, which rose to 46% in 2012. Last month, the European single currency’s share of operations was the lowest on record.
SWIFT data also shows an increase in the frequency of yuan-related transactions as the Chinese currency becomes more involved in global money flows. In July, for the second time, more than 3% of instructions sent via SWIFT were in RMB, up from around 0.03% in 2010.
As is known, the BRICS countries (Brazil, Russia, India, China, South Africa) are reducing the use of the US dollar and expanding the use of the national currencies of the member countries in mutual trade.
Currently, the share of the currencies of the BRICS countries on a global scale is insignificant. According to the IMF, 60% of the world’s foreign exchange reserves are stored in US dollars. This is down from around 70% in 2000, but still higher than any competitor. The euro is next (about 20%), followed by the yen and the British pound.
Seven years after the International Monetary Fund added the yuan to the basket of currency reserves, it has a minuscule share of 2.6%.
Recall that earlier the White House said that the US administration does not consider BRICS as a geopolitical rival.
Source: korrespondent
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