The euro is used to pay more than the dollar

D.In October, the euro overtook the dollar as the most widely used means of payment for the first time since February 2013. This is the result of current statistics from the Swift banking payment network. Accordingly, the euro-denominated transactions in the Swift network had a share of 37.82 percent, while the American currency came to 37.64 percent.

The European common currency has gained six percentage points since the beginning of the year. In contrast, the dollar lost 4.6 percentage points. However, he is ahead again if transactions within the euro zone are left out. Then the world’s leading currency has a share of 41.71 percent and the euro 38.52 percent.

Including transfers in the euro area, the pound sterling was the third most important currency with a share of 6.92 percent in October, ahead of the Japanese yen with 3.59 percent. The ranking of the most important currencies for trade finance shows that there is still a long way to go for the euro to question the role of the dollar as the world’s undisputed reserve currency. Here the dollar had a share of 85.56 percent and the euro 7.29 percent in October.

Dollar is the world’s reserve currency

However, the European common currency has made up some ground over the past two years. In October 2018, the proportion was just under one percentage point lower. According to the annual foreign exchange report of the European Central Bank (ECB) published in June, the dollar had a share of almost 61 percent as a reserve currency last year, almost one percentage point less than the year before. The euro came to 20.5 percent. That was 0.2 percentage points more within a year. The role of the American currency in international debt and credit is similarly dominant, with shares around the 60 percent mark.

The share of the Chinese renminbi in international payments fell to 1.66 percent in October, according to Swift statistics. Two years earlier it was 1.7 percent. The Chinese currency remained unchanged in sixth place. The renminbi is also comparatively insignificant as an international reserve currency. Although it doubled its share to 2 percent between 2017 and 2019, the Japanese yen with 5.7 percent and the British pound with 4.6 percent have significantly more weight in the international currency reserves.


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