US dollar shares shrink in global reserves amid de-dollarization trend
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The International Monetary Fund IMF reveals that in the third quarter of 2023, the US dollar's share in the global central bank reserves sunk to 59.2%.
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Bank notes from various countries are displayed on the wall of a small shop on Friday, Dec. 19, 2014. (AP)
The International Monetary Fund (IMF) revealed that in the third quarter of 2023, the US dollar's share in the global central bank reserves sunk to 59.2% amid efforts to de-dollarize the global financial economy.
While the US dollar remains the dominant international reserve currency, its shares plunged from 70% at the start of the millennium, constituting more than a 10% decrease in two decades. The euro comes in second at a sloping 19.6%. However, the Japanese yen showed a 0.2 increase over the previous quarter, from 5.3% to 5.5%. Other currencies, including the yuan, pound, Canadian dollar, and Swiss franc, saw very slight to negligible changes.
According to SWIFT, a global financial messaging service, collected data showed that the Chinese yuan international payments share hit a record high in November, becoming the fourth most traded currency globally. Cross-border yuan trades have also increased as China's People's Bank carries over 30 bilateral currency exchanges with foreign central banks, including those of Saudi Arabia and Argentina.
This signifies China's anti-dollar efforts and plans to promote the Yuan as an alternative currency.
Read more: Oil deals struck far from the dollar, US loses shares in global market
BRICS on a de-dollarization mission
Iranian Deputy Foreign Minister Ali Bagheri Kani indicated that Iran, like other BRICS members, will work on the de-dollarization of trade and economic and financial transactions within the group of major emerging economies, revealing that some efforts in this direction are already underway.
"We have planned many missions and joint work with other BRICS members within the framework of this organization," Bagheri Kani told Sputnik.
The diplomat highlighted that "one of the most important tasks is the de-dollarization of trade and economic transactions and financial cooperation."
"Activities in this field of work of BRICS have already started, we hope to strengthen and expand these activities to achieve this goal as soon as possible."
