Based on SWIFT international payments, we are witnessing ‘de-euroization’ and not ‘dedollarization. The euro’s share in SWIFT global payments has dropped to 23% from 38% at the start of the year. Are Russia’s SPFS and China’s CIPS eating up the euro? By the way, China’s share in SWIFT payments reached an all-time high of 3.47% in August!
This is very important. The euro was constructed to create a counter to the USD dominance. The Eurozone consists of 20 developed democratic countries, with a rule of law, a functioning capital market and one central bank (ECB) to oversee it. Moreover, it’s the second biggest economic block. And yet it’s share in the SWIFT payments system, after 22y, is decreasing. How can one expect a BRICS block of creating a new parallel payments system to gain material traction, when it lacks all of the above?