The strongest evidence still appeared that the dollar had not cracked

To say that the status of the dollar is still as described does not match reality. Despite the pessimism that prevailed after the White House imposed comprehensive customs duties, it was not only proven that the dollar was firmly established in the global financial machine as it always was, but it also turned out that its use became widespread. Perhaps the hope is that the thinking of the “sold out from America” ​​is exaggerated after it raised its voice this year. But the Bank for International Settlements said. The bank’s three -year survey of the foreign exchange market, the most comprehensive source of market size and structure, showed that the dollar’s share in all trades was more than 89.2%, a slight increase from the 2022 result. The euro’s share fell slightly to 28.9%, while the yen, according to the report, established in third place with little change. This is not a bad achievement, especially considering that the poll was prepared in April, the month in which President Donald Trump tried to raise the global trading system by setting up steep rates on US imports. The dollar is still king, but American politics robs it of his swing. High volatility – the dollar has fallen sharply and the bond yields have risen sharply – and the theater shock of the Emansipation Day made some investors say that it was the beginning of the end of the long dominance of the dollar. The time will tell it, but there are nothing in these numbers that indicate that the dollar’s desecration is threatening. The anti-Dollar camp, which has been upset over the years by great deficits, the rise of the euro and the collapse of subprime mortgage loans as arguments for the course of the dollar, seems to prove that it is again an empty cry. The bis figures are an argument against another idea that will not disappear: that leaders can not only hold investors, but also the engineer who livestures the exchange rates in the exchange rates. The trade value now amounts to $ 9.6 trillion a day, a 28% increase compared to what it was three years ago. Exaggerated fear and hope have exposed the large size of the market, means that policies to significantly weaken large currencies, or even undermine the plaza chord in the line of the Plaza, are an uphill battle. While the chaos that was unleashed by Trump made the poll a particularly volatile month, the same can be said for the 2022 report, prepared in the aftermath of the Russian invasion of Ukraine. But this trend is indisputable: A 1995 recording shows a market worth $ 1.5 billion a day, which is a relatively small value. This should not be considered an indication of support for Trump. It also does not mean that the dollar is immune to challenges. This may be central to trading, but the extent of this centrality may decrease. Similarly, treasury, the world’s most important value value, are still safe, but at the same time less safe than they were before April 2. Trump’s campaign to change the global economic order threatens the throne of the dollar. The shortcomings of potential competitors have a significant impact. Former US Treasury Secretary Larry Summers told an audience to Dartmouth College last year that Europe was a museum, Japan was a nursing home, China was a prison, and Bitcoin was an experiment. These were harsh words, but the message was fair: If one of these countries holds together, American assets will face fierce competition. It’s not necessarily a bad thing. The width and depth of the US Treasury market means that Washington is able to borrow on a scale that will hinder any other country. While the US dollar is everywhere, there is at least one other winner in the BIS report. The Chinese Yuan accounted for 8.5% of the transactions, of 7% in 2022. This percentage is still small compared to the most important currencies, but it is now very close to the pound star, whose share has dropped to 10.2%. Beijing’s pressure to increase Yuan’s status one of Beijing’s long -term goals is to increase the yuan’s global attraction, and these results indicate that officials are making some progress. (Despite the battle of the pound, London remained the lovely place; British capital accounted for 38% of the total trading volume.) It is important not to be carried away by the Yuan’s profits. The numbers can be blown up due to local investors who shed money in Hong Kong shares, explains Julian Evans-Pritchard of Capital Economics. China opens a digital yuan center in Shanghai to increase its global use. The Yuan’s part of the global payment transactions registered with the Society for Worldwide Interbank Financial Telecommunications (SWIFT) totaled only 2.9% in August. “The overall picture is that foreigners’ willingness to use the renminbi or use renminbi-dominated assets are still limited,” Evans-Pritchard wrote in a note last Thursday. Beijing recently made his efforts to establish a new financial system in which a few currencies on approximately equal conditions compete an anti-dollar problem. This ambition is only convincing in the long run. The Yuan deserves praise, but it is still far from its purpose. The most important point is that the hope of the Sell Out America Choir is still far -fetched.