Euro’s use in international payments drops to three-year low

The euro’s use for international payments dropped in April to the lowest in three years as those using the US dollar ticked up and the Chinese yuan’s share rose to the highest in five months. 

Data from the Society for Worldwide Interbank Financial Telecommunications, or SWIFT, showed the proportion of cross-border transactions involving Europe’s common currency fell to 31.74 per cent of the total in April from 32.64 per cent in March. Dollar usage climbed further to 42.71 per cent from 41.74 per cent, Bloomberg reports.

The share of the dollar continued to expand following the collapse of several US lenders and concerns around Switzerland’s Credit Suisse Group AG that ultimately led to its acquisition by UBS Group AG. Even with its most recent drop, the euro is still the second-ranked currency globally for payments on SWIFT.

The share of yen in the payments reversed after a spike in March. It was at 3.51 per cent in April after 4.78 per cent in March, the report said.