The coronavirus pandemic has changed the rules of global trade forever. These significant changes have already influenced financial markets. That is why the US dollar is losing its dominance amid the new conditions.
According to the report from the Society for Worldwide Interbank Financial Telecommunications (SWIFT), most countries will hardly conduct financial operations in US dollars amid the pandemic. At the moment, they prefer other foreign currencies. Thus, the euro is the main rival of the US dollar in this race. Investors are actively using euros in trading. As a result, the single currency has outperformed the US dollar for the first time since 2013 and took the leading position.
There are analysts who foresee a collapse of the greenback in the near future. The SWIFT report only supports this idea. However, they ignore the fact that the US dollar is still used in trading settlements. Moreover, the current transition of power in the US also has a negative influence on the national currency. Nevertheless, they prefer not to take into account such obvious facts. They are only seeking reasons to back up their predictions.