Tag Archives: U.S. Dollar

As of early 2026, the U.S. Dollar remains the overwhelming “King” of global trade, despite high-profile efforts by nations like China and Russia to use their own currencies.

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Published January 15, 2026

Here is the breakdown of exactly how much of the world’s business is conducted in Dollars versus other currencies.

1. The “Invoicing” Number: ~50%

Approximately 50% of all global trade invoices are written in US Dollars.

  • The Disconnect: This is staggering because the United States itself only accounts for about 10–11% of global trade volumes.
  • The Reality: If Brazil sells coffee to Vietnam, or if Saudi Arabia sells oil to India, they almost always write the contract in US Dollars, not Reals, Dongs, or Rupees. This is known as “Vehicle Currency” status.
  • Total Value: With global trade estimated at roughly $35 Trillion in 2025, this means roughly $17.5 Trillion worth of goods annually are priced and sold in USD.

2. The “Payments” Number (SWIFT): ~59%

When it comes to actually transferring the money between banks (via the SWIFT messaging system), the Dollar’s dominance is even higher because it is the “middleman” currency for smaller nations.

  • USD Share: ~59% (Recent data shows it widening its lead).
  • Euro Share: ~13% (Has declined significantly; historically it was often >30%).
  • Chinese Yuan (RMB): ~5–6% (This has doubled in recent years but remains a distant third).

3. The “Reserves” Number: ~58%

This represents the “savings accounts” of Central Banks (like the Bank of Canada or People’s Bank of China).

  • USD: ~58% of all global official reserves.5
  • Euro: ~20%.6
  • The Shift: While the percentage of USD has slowly drifted down from ~70% (20 years ago) to ~58% today, the money hasn’t gone to other currencies—it has mostly gone into Gold.

Summary Table: The Dollar vs. The World

MetricUS Dollar ShareNext Competitor
Trade Invoicing~50%Euro (~20%)
Global Payments (SWIFT)~59%Euro (~13%)
Central Bank Reserves~58%Euro (~20%)
Oil Markets~90%+Yuan (growing in Russian/Iranian trade)

Why this matters for your Canadian business

Because 50% of trade is invoiced in USD, the CAD/USD exchange rate (currently ~$1.38) impacts your input costs even if you aren’t buying from America.

  • If you buy paper from a mill in Brazil or Indonesia, they likely set their price in USD.
  • When the Canadian Dollar weakens, all of your global imports get more expensive, not just the ones from the U.S.