SWIFT: Dollar share in global payments growing

According to SWIFT, the proportion of dollars used in international transactions is growing.

Data shows that the US dollar was used in almost half of all cross-border purchases last month.

After looking at SWIFT data, RIA Novosti found that the share of the US dollar in international payments made through the SWIFT financial messaging system hit 48% in August; this is the highest level since these kinds of data have been collected.

The news source said that the dollar's share of global transactions went up by 1.57% compared to July, which strengthened the dollar's standing in international settlements on Thursday.

On the other hand, the share of the euro fell to an all-time low of 23.2% last month, down from 36.44% in August 2022. Experts said that the euro's fall was because it was becoming less popular outside of the group of 20 countries that use it.

The Chinese yuan, on the other hand, hit a record high last month. Its share of foreign payments went up from 3.06% in July to 3.47% in August.

The increasing use of the yuan in cross-border purchases shows that China is moving away from the dollar and that Beijing is trying to get people to use its currency, the outlet says.

But earlier this month, Stephen Jen, who used to work for the International Monetary Fund and now works for Morgan Stanley, said that the dollar's share of foreign savings has dropped by about 11% since 2016. The economist says that most analysts use IMF data to determine the nominal value of central banks' dollar stocks but need to consider how much the currency has lost value.