In October, the common European currency overtook the dollar as the most widely used means of payment for the first time since 2013. This is the result of current statistics from the Swift banking payment network. According to this, 37.8 percent of all money transfers were in euros, in dollars it was only 37.5 percent.
According to the Bloomberg news agency, the reasons for the fall in popularity of the US currency are the trade turmoil, the recession caused by the corona pandemic and political disagreements.
Since its high in March, the dollar has lost more than 11 percent against a basket of other major currencies. In contrast, the euro has gained six percent since the beginning of the year.
Nevertheless, the dollar remains the most important funding currency. The US currency accounts for around half of all cross-border credit and international debt securities, according to a July report by the Bank for International Settlements.
According to the BIS, around 85 percent of all foreign exchange transactions are against the dollar and it makes up 61 percent of official foreign exchange reserves, adding that around half of international trade is settled in the US currency.
In addition to the euro and the dollar, the pound sterling remains a widely used currency. The British currency was the third most popular means of payment. The Japanese yen is in fourth place – ahead of the Canadian dollar and the Chinese yuan.
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