Share of dollar in global payments rising – SWIFT

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After analysing SWIFT data, RIA Novosti reported that the US dollar’s share of international payments via the SWIFT financial messaging system hit 48% in August, the highest level since such data began being gathered.

According to the site, the dollar’s share of worldwide transactions increased by 1.57% from July to improve the American currency’s position in international settlements.

Meanwhile, the euro’s share fell to an all-time low of 23.2% last month, down from 36.44% in August 2022, according to data. Experts blamed the euro’s decline on its losing appeal outside of the eurozone’s 20 member countries.

Meanwhile, the Chinese yuan set a new high last month, with its proportion of international payments rising to 3.47%, up from 3.45%.

According to the publication, the increased share of yuan in cross-border transactions underscores China’s move away from the dollar, as well as Beijing’s efforts to promote the use of its national currency.

However, former International Monetary Fund and Morgan Stanley economist Stephen Jen stated earlier this month that the dollar’s share of foreign reserves has really declined by around 11% since 2016. According to the economist, most analysts analyse the nominal value of central banks’ dollar reserves using IMF data that does not account for currency depreciation.