According to data from SWIFT cited by Bloomberg, a media company, this week, the use of the euro for international transactions dropped to its lowest level in three years in April.
According to data from the Society for Worldwide Interbank Financial Telecommunications, the percentage of international transactions involving the euro decreased from 32.64% in March to 31.74% in April.
Transactions using US dollar increased to 42.71% from 41.74% in March, while transactions with the Chinese Yuan reached their highest level in five months. According to the data, the percentage of payments made in Japanese yen decreased from 4.78% in March to 3.51% in April.
The media company in report, stated, “The share of the dollar continued to expand following the collapse of several US lenders and concerns around Switzerland’s Credit Suisse Group AG that ultimately led to its acquisition by UBS Group AG.”
Despite the recent decline, the euro is still the second-ranked currency for international payments on SWIFT, according to the research.
As the Chinese government works to internationalise the usage of its currency, the use of the yuan in international trade financing has been progressively increasing. As more nations work to lessen their reliance on the Western financial system, and specifically the US dollar, the Renminbi has been playing a significant role in international trade. In order to counter Western sanctions against itself, Russia and its trading partners have begun using more local currencies in their transactions. They are also attempting to create a new reserve currency.