The latest data from the international payment messaging system SWIFT shows that the US dollar is the most used currency in the world for cross-border transactions. The total transaction value in the US dollar stood at 60.08% as of December 2024. The Euro comes at a distant second at 12.83% indicating that the dollar’s dominance is here to stay. The other leading currencies are in single digits and stand no chance in challenging the US dollar.
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The US dollar makes up a significant part of the global transactions in the SWIFT payment system. Currencies like the Japanese yen take 5.09%, while the Chinese yuan, which is looking to uproot the US dollar’s global dominance stands at 2.8%. The data indicates that the Chinese yuan has a herculean task to take on the USD as its usage is minimal. Despite spearheading the de-dollarization agenda, the Chinese yuan is yet to become the most accepted currency.
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US Dollar Remains Top of the Charts, Stays Ahead of Other Currencies
The de-dollarization trend could soon cool down as Trump is threatening competitive countries with trade tariffs. Several nations could back out of the de-dollarization agenda to safeguard their imports and exports sector. Additional tariffs are burdensome and impacts regular businesses causing disruption in the supply chain. Trump has warned that countries that settle trade in local currencies and not the US dollar will face tariffs.
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A 25% tariffs has already been imposed on Mexico and Canada in exchange of securing the US border. In addition, Trump also imposed 10% tariffs on China but the Xi Jinping administration retailed with 15% tariffs on coal and gas imports from the US. Local currencies are facing the heat after Trump reclaimed the White House as the US dollar is strengthening. Read here to know how long the US dollar could remain the world’s most dominant currency.
