The US dollar remains the dominant currency, accounting for more than 80% of trade transactions and 60% of foreign exchange reserves, said Gita Gopinath, First Deputy Managing Director of the International Monetary Fund , at the event "Geopolitics and its impact on world trade and the dollar" on May 7, UNN reports.
Details
"Despite rising geopolitical risks, recent data shows that the US dollar remains dominant. According to SWIFT, it accounts for more than 80 percent of trade finance, presumably because for most commodity trade, invoices and payments continue to be made in dollars," Gopinath said.
According to her, the dollar "also accounts for almost 60 percent of foreign exchange reserves, despite the gradual diversification of foreign exchange reserves away from the dollar and partly into non-traditional reserve currencies such as the Australian dollar and the Canadian dollar.