(MENAFN) Recent data from the SWIFT messaging system has revealed a significant decline in the euro's share of global cross-border settlements, reaching an all-time low last month. According to transaction data compiled by the global financial service, the portion of transactions involving the European single currency stood at 21.93 percent in March, marking a notable decrease from previous levels.
The decline in the euro's share of SWIFT transactions is evident in the context of a broader trend, with its portion of international payments nearly halving over the past year. In January 2023, settlements in euros accounted for 37.88 percent of transactions, compared to a steep drop to 22.41 percent by December 2023. The latest figures underscore a significant shift in global currency dynamics, with the euro losing ground to other major currencies.
Conversely, the US dollar has maintained its dominance in SWIFT transactions, with its share increasing to 47.37 percent in March, marking the highest level since December 2023. Other currencies, such as the British pound and the Chinese yuan, have also seen fluctuations in their share of SWIFT transactions.
The decline in the euro's global currency share can be attributed to various factors, including the rise of China as an economic powerhouse and efforts by emerging economies to attain financial independence. Additionally, the deterioration of ties between the European Union and Russia may have further contributed to the euro's diminished role in global transactions.
Overall, the data highlights the evolving landscape of global currency markets and the ongoing shifts in the relative importance of major currencies. As geopolitical and economic dynamics continue to evolve, market participants will closely monitor developments in global currency trends and their implications for international finance.
MENAFN25042024000045015687ID1108137813
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.