In a landscape increasingly characterized by discussions of dedollarization and the emergence of alternative currencies, the US dollar continues to maintain its stronghold in global finance. According to the official information, recent findings from the Kobeissi Letter highlight the dollar's enduring dominance in international transactions.
US Dollar Dominates International Transactions
The report reveals that the US dollar now represents 50.5% of all international transactions processed through the SWIFT network, reaching its highest level since 2023. This marks a significant increase of 116 basis points over the past four years, underscoring the dollar's resilience amid rising competition from other currencies.
Euro and Other Currencies
Following the US dollar, the euro holds the second position with a share of 21.9%. Other currencies, including the British Pound, Canadian Dollar, and Japanese Yen, lag behind, further emphasizing the dollar's supremacy. Notably, the Chinese Yuan, often viewed as a potential challenger, accounts for only 2.7% of SWIFT transactions, indicating a considerable gap that may take years to bridge.
- British Pound
- Canadian Dollar
- Japanese Yen
Future of the Global Monetary System
As the global economy shifts towards a more multipolar monetary system, the US dollar's robust position in international finance remains unshaken, reflecting its continued relevance in global trade and investment.
Asian currencies have recently faced declines against the US dollar, highlighting the ongoing impact of global financial dynamics. For more details, see the full report on the situation here.
