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“The dollar's share of traded currency volumes is just shy of record highs, at 88%, while the euro's share has shrunk by 8 percentage points in the last decade
by bwb 3y ago
“The dollar's share of traded currency volumes is just shy of record highs, at 88%, while the euro's share has shrunk by 8 percentage points in the last decade to a record low of 31%. The share of the Chinese yuan, meanwhile, has risen to a record high of 7%”
Um where?
Why do exports matter for FX? Exports are local?
- Closi 3y agoNot always - take oil as the obvious example where transactions are usually done in dollars regardless of the shipping from / shipping to location. If you were in England and wanted to buy oil in Uganda for use in a subsidiary in Brazil, you would probably use USD regardless of the fact that USD is not the 'standard' currency of any of the parties.
- bwb 3y agoTrue, but 88% is high, this article doesn't seem to make a good case for why the other trends are worrisome... And Russia going insane is probably a good example, where they are shifting their oil direct to local currency since they have no choice given they started a war.