The Strategist

SWIFT: US Dollar is not the most popular cross-border payments currency anymore


11/20/2020 - 03:11



For the first time since 2013, the most popular currency for international payments was not the dollar, according to SWIFT data. Now the euro is in first place, and the Canadian dollar overtook the Chinese yuan. In October, the euro became the most popular currency for international payments, beating the dollar for the first time since February 2013. This is reported by Bloomberg with reference to SWIFT data.



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In October, the euro became the most popular currency for international payments, bypassing the dollar for the first time since February 2013. This is reported by Bloomberg with reference to the SWIFT data.

SWIFT processes cross-border payments from more than 11,000 financial institutions in 200 countries, the agency says. According to statistics, 37.8% of client and institutional international payments through SWIFT in October were made in euros, the share of dollar payments was 37.6%. 

The decrease in the share of international payments in dollars is due to a slowdown in global trade caused by the pandemic recession and political instability, says Bloomberg. According to the agency, the U.S. currency weakened by more than 11% after its March peak compared to the basket of major currencies. Experts predict a further decline in its value, writes Bloomberg. For example, the Citigroup bank believes that in 2021 the dollar will fall by 20% against the major currencies, if COVID-19 vaccines become widespread and help to revive global trade and economic growth.

source: bloomberg.com




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