Experts from Credit Agricole, one of France’s largest financial institutions, have conducted research that shows despite the rising share of military-technical cooperation in international transactions, foreign investment companies have maintained stable reserves in US debt obligations. This, according to analysts, indicates the continued dominance of the US dollar and suggests that investors can still rely on it during times of global economic uncertainty.
“We believe that expectations of a significant reduction in dollar reserves are premature. The US dollar’s share in international SWIFT banking transactions has reached its highest level in over a decade. Conversely, the euro has seen a decline in its share, while the yen and the British pound have also witnessed a decrease. These developments are likely to slow down the movement towards de-dollarization,” states a message to Credit Agricole’s foreign exchange strategy group’s clients.
Ahead of Credit Agricole’s report, analysts from Morgan Stanley have examined global market trends and suggested a potential revision of the US dollar’s role as the linchpin of the international financial system in the near future.