The US Dollar’s complete dominance of the global financial system shines out from a new survey of activity from the Bank of International Settlements.
Despite US-China trade war, ballooning deficits and, let’s be honest, the most divisive presidency in living memory, the greenback is still on one side of fully 88% of all foreign exchange trades, the BIS said. This stark fact also underlines the importance of the Federal Reserve and its monetary policy way beyond US shores.
The Euro's share of all trades expanded a little, to 32%, with the Japanese yen retaining third spot despite a loss of about five percentage points in its share since the last survey. The BIS undertakes this research every three years. China’s Yuan failed to progress. It remained the world’s eighth most traded currency, which is where it was three years ago. The unit ranks just after the Swiss Franc.