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29 Sep, 2023 05:33

Share of dollar in global payments rising – SWIFT  

The US currency was used in nearly half of cross-border transactions last month, data shows
Share of dollar in global payments rising – SWIFT   

The share of the US dollar in international payments via the SWIFT financial messaging system reached 48% in August, the highest level since such data began being collected, RIA Novosti has reported after analyzing SWIFT data.    

The greenback’s share in global transactions rose by 1.57% compared to July, strengthening the position of the American currency in international settlements, the outlet reported on Thursday.   

Meanwhile, the share of the euro slumped to an historic low of 23.2% last month, down from 36.44% in August 2022, data showed. Experts attributed the euro’s slide to its declining popularity beyond the bloc of 20 countries that use the currency.   

Meanwhile, the Chinese yuan showed record gains last month, as its share in international payments rose to 3.47%, up from 3.06% in July. 

The growing share of the yuan in cross-border transactions reflects China’s trend of shifting away from the dollar, as well as Beijing’s efforts to promote the use of its national currency, the outlet reports.  

However, earlier this month, former International Monetary Fund and Morgan Stanley economist Stephen Jen said the dollar’s share in foreign reserves has actually lost about 11% since 2016. The economist argues that most analysts evaluate the nominal value of central banks’ dollar holdings on the basis of data released by the IMF and don’t take into account the currency’s depreciation.

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