The dollar’s dominant role in international payments hit a new high in August, reaching 48.03 percent of the global share according to SWIFT data and confirmed by RIA News.
From July to August, the dollar’s share rose by 1.57 percentage points, underscoring the currency’s continuing strength in cross-border settlements. In the same period, the euro slipped to a record low of 23.2 percent, down 1.22 points, reflecting waning appeal outside the eurozone. By contrast, the Chinese yuan posted a notable gain, climbing from 3.06 percent to 3.47 percent by the end of August, signaling growing acceptance in international trade and finance.
In mid-September, a former IMF economist spoke with the German publication Welt about a long-term shift away from the dollar, suggesting the dollar’s share in global foreign exchange reserves has fallen by about 11 percentage points since 2016. The analyst cited events such as the freezing of Moscow’s dollar reserves as one of the pivotal moments contributing to this shift. The conversation highlighted the ongoing diversification of reserve holdings and the expanding role of other currencies in official reserves.
These developments point to a broader pattern: while the dollar maintains a dominant position for now, the balance of currency usage in international finance is evolving. Market participants are increasingly considering currency diversification strategies, with central banks and multinational corporations examining exposure, hedging needs, and settlement efficiencies in a multi-currency environment. The August data capture a snapshot of a transition period in which the stabilization and accessibility of alternative currencies, along with regional payment systems, are shaping the future landscape of global finance. This trend reflects practical responses to geopolitical dynamics, monetary policies, and the push for broader diversification of reserves and invoicing currencies. Attribution: RIA News; Welt interview summary from a former IMF economist.