- Dollar is very important for the world financial system
- But the role of the euro will become stronger as a reserve currency over the next few years
Well, the dollar has certainly lost some credibility and allure in the last two months. And this week’s price action itself underscores that sentiment, with the big gains on Monday quickly being erased yesterday and today. But in terms of wider acceptance for payments, the euro itself has struggled over the past decade while dollar usage continues to dominate. The single currency used to command 30% to 35% of the share of international payments via SWIFT. However, that share has now dropped to around 21% to 23% in the past two years. Here’s the latest breakdown from January this year:
This article was written by Justin Low at www.forexlive.com.
