Amid widespread speculation about the decline of the US dollar and the rise of de-dollarization, fresh data reveals that the greenback has reached its highest share of global transactions in four years, solidifying its dominance in international finance.
According to the latest report from theKobeissi Letter, the US dollar now accounts for 50.5% of international transactions processed via the SWIFT network—the highest level since 2023. This marks an increase of 11.6 percentage points over the last four years, underscoring the currency's resilience despite macroeconomic headwinds and narratives of its erosion.
TheKobeissi Letter stated: “The US dollar continues to lead all global transactions. The US dollar’s portion of international transactions via SWIFT is up to 50.5%, the highest since 2023. This percentage is up 11.6 points over the last 4 years. The euro remains in 2nd place at 21.9%. Followed by the British pound at 6.7%, the Canadian dollar at 3.4%, and the Japanese yen at 3.4%.”
Trailing far behind, the Chinese yuan holds just 2.7% of SWIFT transactions, a figure that has remained roughly unchanged over the last three years. This significant gap highlights the challenges competitors face in displacing the dollar from its preeminent position.
SWIFT's overall activity also surged in 2024, processing 13.4 billion trade instructions compared to 11.9 billion in 2023, reflecting robust global trade volumes where the US dollar maintains its lead.
These statistics counter the prevalent discourse on de-dollarization, demonstrating that while the dollar contends with broader market pressures, its role in facilitating the majority of cross-border payments remains unchallenged.
As theKobeissi Letter concluded, “The US dollar’s position in international finance remains strong,” a reminder that reports of King Dollar's demise may be greatly exaggerated.
