Data from the global financial messaging service SWIFT shows that the US dollar has reached its highest share in international payments in over a decade. According to transaction data from August, dollar-related trades surged to a record 48%, making it the top currency by transaction count.
SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, used by major global banks for interbank communication, compiled the data reflecting a technical upgrade this year in trade reporting methods. While the figures do not cover the entire currency market, they underscore the endurance of the greenback in international finance.
Notably, the dollar’s increased dominance has impacted the euro, which, in contrast, recorded its lowest share of trades over the same period at just 23%.
The data also highlights the rising prominence of the Chinese yuan in global foreign exchange flows.
Swift reported that in July, over 3% of instructions involved the yuan, marking a significant increase since 2010 when the figure stood at approximately 0.03%. Despite occasional efforts towards diversification, the latest Swift data suggests that the dollar maintains a robust role in international transactions.
Information for this story was found via Bloomberg, Barchart, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
Gold Price Is The US Dollar’s Enemy – The Daily Dive feat Russell Starr of Trillium Gold
Returning to the Daily Dive is Russell Starr of Trillium Gold (TSXV: TGM), whom sits...