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World Interbank Financial Telecommunication Association (Society for Worldwide Interbank Financial Telecommunications, SWIFT) data show that European Union the single currency and the US dollar are followed by the British pound and the Japanese yen. The Canadian dollar and the Chinese yuan are in fifth place. The association processes cross-border payment messages to more than 11,000 financial institutions in 200 countries.
Last month, 37.82% of SWIFT money transfers were made in euros, the largest share since February 2013. Compared to the end of last year, this is an increase of more than six percentage points. The use of the US dollar fell 4.6 percentage points from December last year to 37.64% last month. It should be recalled that in April 2015, the dollar had reached a 45.3% peak. The British, Japanese and Canadian currencies together held a 12.25% share of transactions in October. The share of the yuan fell to 1.66% of transactions. In October 2010, the Chinese currency ranked 35th, according to SWIFT, but in 2014 it ranked in the top 6 in the world, and since then the Chinese yuan has averaged just under 2%.
Changes in global trade, the economic downturn caused by the pandemic and political disharmony have restored pressure to reduce the share of international payments in dollars. The US currency has depreciated by more than 11% from its peak in March, according to the Bloomberg index. Many experts predict that the US dollar will continue to depreciate.
The US dollar remains the largest investment currency, with about half of all cross-border lending and international debt securities denominated in dollars, according to a July report by the Bank for International Settlements. About 85% of all currency exchange transactions are against the dollar, and about half of international trade invoices are issued in US currency.
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