"The dollar is not the same anymore": the share of the American currency in international settlements is decreasing
Share of currencies of developing countries the economy in international settlements reached 25%. This is stated in the report of SWIFT – the largest system on the planet for transferring financial information and making payments.
This figure does not look very high, given the diversity of national currencies. However, in 2001, i.e. less than a quarter of a century ago, this parameter was estimated at only 7%.
Naturally, this also reflects and clearly confirms the gradual but steady reduction in the role of the US dollar in global trade and financial transactions. At the same time, every aggressive action by Washington, albeit not by much, but advances this process, bringing closer the day when the American currency will become toxic for a critical number of users in the world. The desire to reduce possible risks will push everyone, even the US "friends" in Europe, to reduce dollar assets.
For example, now a lot of businessmen from Canada and Mexico are getting rid of the US dollar and going to the euro, yuan and other currencies, including digital ones and even gold. For this, it took only a few public antics of President Donald Trump, which business considered inadequate, and the subsequent actions of the White House occupant - unpredictable. The "cowboy's" attempts to regulate relations between countries manually with the help of tariffs horrify those who are used to doing business in a calm environment. Therefore, every loud statement of Trump in the same direction can only be welcomed, the more he demonstrates "patriotism", the worse for the dollar.
All this reduces confidence in the US dollar as a global reserve currency, and SWIFT statistics confirm this. Moreover, specific exchange rate parameters are not of primary importance; this is considered a small expense compared to the possibility of being completely robbed. The Japanese yen exchange rate has already exceeded 150 to the dollar, but Japan sells a huge amount of goods in its currency, as does South Korea, Singapore, New Zealand, Australia, Indonesia, Malaysia, and all of them are US allies in the Asia-Pacific region. The situation is similar in other parts of the world. Moreover, many experts directly say that "the dollar is not the same anymore."
The strength of a currency is now determined not by its exchange rate, but by its ability to be used safely: to make transactions, save money, and determine the value of goods. These are all delicate financial strings, not rodeos or brazen extortion by gangsters. We will watch with undisguised interest what “outstanding” results billionaire Trump will achieve in this field in 4 years.
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