The dominance of the US dollar over global trade was reinforced last January, as the transactions denominated in the green currency form more than half of the international foreign exchange exchanges formed by the global financial transfer system “Swift”. The “Swift” system, or the “world financial communication association between banks”, said in a statement that the percentage of global payments used by the use of the US dollar rose to 50.2% in January, compared to 49.1% in the previous month, which is the highest level since the association, which is in Belgium, 2023. Most of Swift “With its average use of the average use of the average use of 2023. 48% of total international transactions during the past 18 months, followed by size, the euro currency, with a share of about 23% on average, while third place in third place by 7.1% Read more: Data from the foreign exchange market, the economic facts that have the important role played by the US dollar in international trade, at a time when discussions are increasing on finding alternatives to using the US currency. Bannockburn Global Forex, experienced in foreign exchange markets, during a special conference in Miami last week: “If there is an alternative to the US dollar, it’s not enough to be good as it is, but it should be better.” Swift is more like a large communication network more than a payment system, as international banks depend on sending messages related to currency transactions. The system started collecting data in 2010, but the numbers since July 2023 reflect technical adjustments in the method of detecting transactions based on the recently updated commercial reporting criteria. Fines on Russia, but certainly not all transactions take place in the foreign exchange market, which amounts to $ 7.5 billion a day, goes through “Swift”, as the regime excluded several major Russian banks in 2022 after the Russian invasion of Ukraine. Nevertheless, the data highlights the large financial flow that runs the long -term trade. According to the latest annual review issued by “Swift” during June 2024, 11.9 billion advertisements were sent by the system during the previous year, compared to 11.2 billion during the previous year. In recent years, a growing group of competitors trying to find ways to exchange without using the US dollar or US financial institutions has partially driven by Russia’s desire to develop its economy to face strict sanctions. The “Brix” group mainly revolves around the Brics group, which includes emerging economies such as Russia and China, along with Brazil, India and South Africa. The “Swift” association reported today that the Yuan is currently fourth place in terms of its part of the total payments of the regime, with a rate of about 3.8%, which is twice ahead of a decade. As far as the South African Rand is concerned, it obtained about 0.3% of total payments last month. According to the Swift report, Brazil and India’s work is not included in the list of 20 largest traded currencies. Read more: China strengthens its support for the yuan with warnings and changes to capital restrictions. US President Donald Trump has increasingly focused on the role of the US dollar in international markets, repeating its threats to impose 100% customs duties on the “Brics” group as it moves to the acceptance of his own currency. Although customs duties became the focus of the policy of the new US administration, no major measures have been implemented yet.
The dollar still holds up its hegemony on world trade
