Most of the transactions in the international market are in US dollars. But economists have opined that this American currency is gradually losing its dominance.
Live Mint, an Indian news media on trade and economics, reported that the amount of dollars in the reserves of the central banks of various countries around the world is decreasing day by day. In addition, the International Monetary Fund (IMF) reported that the use of the dollar decreased to 59.2 percent in the third quarter of 2023. Economists believe that this has happened as a result of many countries in the world taking initiatives to reduce their dependence on the dollar.
The IMF also said that despite the decline in the use of the dollar, the dollar is still the top reserve currency. Euro is in second position. However, the proportion of Japanese yen in reserves has increased. The yen ratio increased to 5.5 percent from 5.3 percent in the last quarter. The Chinese Yuan, British Pound, Canadian Dollar and Swiss Franc are stable.
Since the imposition of Western sanctions on Russia, most of the world’s countries have turned to using their own currencies instead of the dollar for international transactions. The European Bank for Reconstruction and Development (EBRD) said Russia’s increasing use of the yuan in trade since the Western sanctions will have an impact on the dominance of the dollar.