Dollar Maintains Global Dominance Despite Pressures

Despite ongoing political uncertainty, the U.S. dollar continues to assert its dominance in international trade and finance. 

Recent data show the dollar’s share of global transactions reaching 50.5% in December 2025, the highest level since 2023, even as its value slipped against a basket of major currencies.

According to the Society for Worldwide Interbank Financial Telecommunication (SWIFT), which tracks cross-border banking transactions, the dollar remains central to global finance. It was involved in 89% of all foreign exchange transactions in April 2025, and central banks continue to stockpile gold, reinforcing the dollar’s role as the leading reserve currency.

Following the dollar, the euro accounted for approximately 22% of international transactions, with the British pound, Canadian dollar, Japanese yen, and Chinese yuan trailing behind. Analysts note that the euro and yuan’s relative decline contributed to the dollar’s expanded share in December.

Global banks rely on the SWIFT network to facilitate interbank currency trades. In 2024 alone, 13.4 billion instructions were sent through SWIFT, up from 11.9 billion the previous year. While SWIFT data do not cover the entire $9.5 trillion daily foreign exchange market, they provide a strong indicator of trends in dollar usage.

“Dollar dominance in international finance remains resilient, even amid policy volatility,” said Elias Haddad, Head of Global Market Strategy at Brown Brothers Harriman. “However, ongoing political intervention in U.S. trade and fiscal policy, along with concerns about the Federal Reserve’s independence, could threaten the dollar’s reserve currency status over the long term.”

The dollar’s value has been volatile under President Trump’s administration. Bloomberg’s dollar index fell over 7% in 2025 and dropped 0.5% during a single week, affected by political developments such as Trump’s proposals regarding Greenland. Yet, these short-term movements have not shaken the dollar’s position at the center of global finance.

“Even with European investors cautious about Treasury holdings, the dollar’s role as the primary global currency remains intact,” Haddad added.