JPMorgan’s strategists Meera Chandan and Octavia Popescu at the Wall Street bank laid out that while overall dollar usage remains within its historical range, its usage was more “bifurcated under the hood”.
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%.
“De-dollarisation is evident in FX reserves where (the dollar’s) share has declined to a record as share in exports declined, but is still emerging in commodities,” the strategists said.
JPMorgan’s note on Monday estimated for global exports, the U.S. share is now down to a record low 9%, whereas China was at a record high of 13%.
In global central bank FX reserves too, the dollar’s share is down to a record low of 58%, albeit a level that is still by far the largest globally.