📉 What’s Happening to the Euro?

Recent data from SWIFT reveals a significant shift in global currency usage:

🔹 US Dollar: Now 49% of global payments – the highest in 12 years! 💵

🔹 Euro: Dropped from ~39% to ~21% in two years, hitting its lowest in a decade. 🇪🇺

🔹 Chinese Yuan: Usage rose from ~2% in 2023 to ~5% now, showing steady growth. 🇨🇳

Why is the Euro Falling? 🧐

Several factors could be driving the Euro's decline:

1. Geopolitical Uncertainty: Europe’s exposure to crises (like energy dependence and regional conflicts) affects investor confidence and transaction preference.

2. Interest Rate Policies: The European Central Bank (ECB) has taken a more conservative stance on interest rates compared to the Fed, making the Euro less attractive for international holdings.

3. Stronger Dollar: The Dollar’s recent strength has drawn more countries and companies to rely on USD for stability and resilience.

With the US Dollar's dominance growing and the Chinese Yuan slowly gaining, the Euro’s role in global payments is facing serious challenges. This trend raises questions about how the Eurozone will adapt to maintain its relevance in global finance.