The dollar lost its place as the main currency on SWIFT

The decline in the share of dollar payments in the SWIFT system is associated with the depreciation of the US currency, which has lost 11% of its value since March 2020.

For the first time since February 2013, the euro surpassed the US dollar in the number of payments in the international system of interbank payments (SWIFT). Bloomberg reported this on Thursday, November 19, citing October data from the SWIFT system.

So last month, the European currency accounted for 37.82% of international payments through SWIFT. This is 6% more than at the beginning of 2020. Payments in dollars represented 37.64% of the total of the previous month. The peak in the volume of international payments in dollars occurred in April 2015, when the US currency accounted for 45.3% of transactions in the SWIFT system.

Bloomberg associates the reduction in the share of dollar payments in the SWIFT system with the depreciation of the US currency, which has lost 11% of its value since March 2020.

The third most popular currency in the international payments system in October was the British pound, the fourth – the Japanese yen, the fifth – the Canadian dollar, which displaced the Chinese yuan from this position.

The renminbi accounted for just 1.66% of international payments in October, the worst since April 2020.

The Society for Worldwide Interbank Financial Telecommunications (SWIFT) interbank payment and information transfer system serves cross-border transfers from 11,000 financial institutions in 200 countries.

Earlier this week, it became known that the yuan rose against the dollar to its highest level since 2018. This was due to investor optimism about the prospects for the Chinese economy, which is recovering rapidly from the COVID-epidemic. 19.

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