Key Takeaways:
- Euro’s share in global transactions via SWIFT has declined, while Chinese Yuan has gained.
- Currently, euro accounts for just 25% of the global transactions.
- Meanwhile, the US dollar remains the most popular currency with over 38%.
YEREVAN (CoinChapter.com) — Recent data from SWIFT, the global financial messaging network, reveals a notable decline in the euro’s share in global payments.
According to SWIFT’s statistics, international transactions utilizing the world’s second most popular currency have dropped to 23%. This is a sizable dip from the 38% it reported at the beginning of the year.
Around a decade ago, in 2012, the euro’s share in SWIFT transactions was double today’s number.
US dollar, Chinese Yuan gain in SWIFT transactions share
Meanwhile, the share of the Chinese Yuan (CNY), also known as the Renminbi (RMB), has increased. As per reports, China’s share in international payments reached an all-time high of 3.47% last month.
A small portion of that, 0.88%, came from the Eurozone. Currently, the Chinese RNB is the 5th popular currency in global transactions. In the list, it stays behind the US dollar, the euro, the British pound, and the Japanese Yen.
The US dollar’s prominence in international payments has also reached unprecedented levels. In July, transactions involving the greenback surged to a historic high of 46%. A decade ago, USD’s share was just over one-third of all transactions.
While this was a significant increase, the greenback has strengthened its footing even further. In August 2023, payments using the US dollar climbed to 48.3%.
The US dollar continues to be the most frequently used currency in terms of transaction volume.
As of the end 2021, the US dollar accounted for about 40% of cross-border Swift flows, according to the IMF. Meanwhile, at the same time the euro accounted for approximately 37% of global payments conducted through the SWIFT system.
Despite the decline in its share, the euro remains a crucial player in international finance and trade.
While the euro’s share in SWIFT global payments has decreased, it remains a vital currency in international trade and finance.
The evolving financial landscape and geopolitical dynamics will continue to shape the currency’s role in global transactions, making it crucial for policymakers and stakeholders to adapt to these changes.
