FX.co ★ IMF:USD keeps its leading position

The US currency is experiencing tough times. Everyone is trying to knock it off its throne. Nevertheless, the greenback is still full of strength.

The International Monetary Fund (IMF) noted that the greenback maintained its dominance in the global arena. According to Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund, the dollar remains strong despite global turmoil, increased geopolitical risks, and the desire of some countries to abandon it.

SWIFT, the international payments system, reported that the US dollar accounted for nearly 80% of global trade finance. The share of the greenback in global foreign exchange reserves is almost 60%. This is quite a lot, though some nations are diversifying their reserves, thus choosing other fiat or digital currencies.

"Some countries are reevaluating their heavy reliance on the dollar in their international transactions and reserve holdings," Gita Gopinath emphasized. According to the IMF representative, changes in the structure of trade finance are most noticeable in China-leaning countries. The recent data showed that the use of yuan in mutual trade settlements significantly increased among such countries. This indicator more than doubled to 8%.