The euro was the most used currency for global payments last month, the first time it has outpaced the dollar since February 2013.
Data from the Society for Worldwide Interbank Financial Telecommunications, which handles cross-border payment messages for more than 11,000 financial institutions in 200 countries, showed the European Union’s single currency and the greenback were followed by the British pound and the Japanese yen. The Canadian dollar overtook China’s yuan for the fifth spot, Swift said.
The dollar remains the top funding currency, with about half of all cross-border loans and international debt securities denominated in the greenback, the Bank of International Settlements said in a July report. About 85% of all foreign-exchange transactions occur against the dollar and it accounts for 61% of official foreign-exchange reserves, the BIS said, adding that about half of international trade is invoiced in the U.S. currency.
SWIFT Currency for International Payments Activity Share Excluding Payments within Euro Area (October 2020) pic.twitter.com/PNf5n696FF— 🇪🇺 🇲🇨🇨🇭Dan Popescu 🇫🇷🇮🇹🇷🇴 (@PopescuCo) November 20, 2020
Euro rises in global payments rankings but dollar remains on top | NASDAQ https://t.co/ZuC4hiEux5— WellesleyHillsFinancial (@FinancialHills) November 20, 2020