Aug 27, 2023, 6:32 PM

Euro shows lowest-ever share in intl. settlements: SWIFT

Euro shows lowest-ever share in intl. settlements: SWIFT

TEHRAN, Aug. 27 (MNA) – The Euro has dipped in an unprecedented display of its decline in global payments through SWIFT, highlighting a shift in preference towards the greenback and the Chinese yuan.

According to data from SWIFT, as reported by media outlets this week, July witnessed the euro's usage in international payments declining to an all-time low.

The Ria Novosti report indicated that, in July, the share of global transactions made using the world's second-most popular currency decreased to 24.4 percent, down by 6.83 percentage points from the preceding month.

The percentage of payments in the US dollar jumped to 46.4 percent, while international settlements using the Chinese yuan exceeded 3 percent, marking the highest level since early 2022. The yuan's influence on foreign trade has consistently grown, in compliance with Beijing's strategy to foster the global adoption of its currency.

SWIFT (the Society for Worldwide Interbank Financial Telecommunications) remains the primary method for handling international payments. Nevertheless, alternative communication systems between banks have emerged over the past few years.

In response to US sanctions in 2014, Russia initiated the establishment of its unique national payment system, the System for Transfer of Financial Messages (SPFS), which facilitates the transmission of financial messages between banks, regardless of whether they are located within or beyond the Russian Federation. Russia introduced its alternative to MasterCard and Visa, the Mir card, to the public in December 2015; Mir cards are now in active use across several countries.

MNA/PR

News ID 205221

Tags

Your Comment

You are replying to: .
  • captcha