Data from August 2023 show a continued retreat of the euro from its share of the global payments mix. The euro dropped to a record low of 23.2 percent, slipping 1.2 percentage points from July. Analysts cited by the data source describe this trend as a sustained shift away from the euro in international settlements, reflecting a broader rebalancing of reserve currencies and payment rails in recent years. The figures come from the System for International Interbank Information Transfer and Payments, commonly known by its acronym SWIFT, which tracks cross-border payment flows and currency usage across the world.
The latest SWIFT data reveal a persistent decline in euro usage since the start of the year, with the sharpest drop occurring in June. In that month, the euro’s share narrowed from about one third of global payments to the mid-twenties range, underscoring a notable shift in the currency landscape. In contrast, the U.S. dollar reached a new historical high in August, accounting for roughly 48 percent of international payments, signaling its ongoing dominance as the default currency for cross-border transfers and invoicing. The divergence between the euro and the dollar illustrates how currency preferences are being influenced by policy, growth dynamics, and geopolitical factors that shape the cross-border payments infrastructure.
Experts point to a mix of forces behind the euro’s dwindling footprint. Growth in Europe has been uneven, with economic momentum constrained in many EU economies. The European Central Bank’s ongoing policy normalization, including higher policy rates, is cited as a factor that can affect cross-border transaction costs and currency demand. At the same time, elevated debt levels within euro area nations and the persistence of inflation add to financing pressures and may dampen the appeal of euro-denominated settlements. External dynamics also play a role: sanctions-related shifts and a broader move toward using national currencies for more trade and settlement activity contribute to a changing international payments map where the euro faces pressure from competing currencies and regional financial actors. All of these pieces together help explain why the euro’s share among global payments has cooled while the dollar strengthens as the primary channel for international trade and remittances.
In related market activity, the euro exchange rate against the ruble recently moved to higher levels on some venues, illustrating how currency volatility and local market conditions can reflect broader global developments. While such moves are one piece of the puzzle, they do not alone determine the destiny of a currency in international payments. The bigger trend remains the relative appeal of the dollar for cross-border transactions, paired with policy decisions and growth signals that influence currency demand and settlement choices across banks and businesses around the world.