FX.co ★ USD regains share in global payments

The US dollar strengthened its position in global trade, reaching a record share of international payments, Bloomberg reported, citing SWIFT data.

In December, the US currency’s share of global transactions rose to 50.5% from 46.8%, the highest level since 2023, when the consortium changed its data‑collection methodology. Put simply, one in every two international payments is again being made in dollars.

The dollar’s gain came mainly at the expense of competitors. The euro’s share fell to 21.9%, its lowest level in a year. The Chinese yuan remained marginal at just 2.7% of global payments, below its own annual average and behind the pound sterling, the Canadian dollar, and the Japanese yen.

Analysts note a growing divergence between the dollar’s use in payments and its market performance. While the currency is strengthening its role in settlements, its exchange rate has moved in the opposite direction. Thus, the Bloomberg Dollar Index has fallen by more than 7% over the past year.

JPMorgan strategists said that the US dollar's dominance in currency transactions persists. However, central banks are increasingly accumulating gold, thus boosting its share in international reserves.

SWIFT data do not cover the entire currency market, but other sources confirm the broader picture. The Bank for International Settlements estimates that the dollar is involved in about 89% of all foreign‑exchange transactions worldwide. The US Federal Reserve estimates that roughly 60% of global debt is denominated in dollars.