The US Dollar Still Dominates Global Reserves & Trade—But for How Long?
The greenback's iron grip on global finance isn't slipping—yet. Despite crypto's rise and de-dollarization chatter, USD remains the undisputed heavyweight champion of reserves and trade.
King Dollar's stubborn reign
Central banks still park over 60% of their reserves in USD. Oil, commodities, and even most crypto trades bow to the dollar's pricing power. The SWIFT system? A USD-dominated relic.
The challengers circle
BRICS nations push alternatives. CBDCs gain traction. Bitcoin becomes legal tender in some jurisdictions. Yet dollar liquidity still rules—for now.
Wake-up call for crypto
True disruption means breaking dollar hegemony. Stablecoins? Mostly USD-pegged. Crypto trading pairs? Still dollar-denominated. Until projects build outside this system, they're just playing in the Fed's sandbox.
The bottom line: The dollar's dominance looks unshakable—until suddenly it isn't. Just ask anyone who trusted Lehman Brothers in 2007.
The US Dollar Is Still The Reigning Currency King
The US dollar is currently being heavily challenged by its competitors. But the USD peers will have to double their efforts to truly derail the USD. A recent data report shared by the Kobeissi Letter confirms how the dollar remains undefeated despite the challenges that the currency has encountered in recent times.
Per the latest SWIFT data, the USD’s share in global payments is now at its highest in 13 years, stable at 48%. Moreover, the aforementioned percentage is twice the euro, as well as 16% higher than the Chinese yuan.
What About USD’s Foreign Reserve Presence?
While the speculations have been running amok, promoting how the world is dumping the USD for good, the new stats have a different story to tell and portray. The SWIFT data further states how the share of the US dollar is involved in nearly 88% of foreign reserves. In addition to this, USD now accounts for 58% of global exchange reserves, beating the Euro and the Yuan away from the process. Leading the change further, USD also accounts for 47% of cross-border payments, solidifying its supremacy in the space.
The US Dollar remains the most dominant global currency:
The US Dollar's share of global payments is now at 48%, the highest in 13 years, according to SWIFT data.
This percentage is TWICE as large as the Euro and 16 times higher than the Chinese Yuan.
The US Dollar is also… pic.twitter.com/Upel5JnlGS