The tend to secularism is clear. You are suffering from the Amercan disease of “Instant Gratificationism.” LOL
The Captain
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How is SWIFT a dollar-based system when you can remit payments in virtually any currency?
It’s not 100% US dollar system but is dollar based. Many transactions will be in US dollars even if the countries involved are outside the USA - it’s just convenience.
The euro and U.S. dollar together made up more than seven out of 10 SWIFT payments worldwide in January 2023, outperforming many other currencies
I read a couple of years ago that something like 90% of China’s overseas transactions were done in US dollars:
Despite that China ranks as one of the main economy’s in the world, the yean ranked as only the eight-used currency for international SWIFT payments.
Okay, but that doesn’t make SWIFT a dollar-based system, does it?
There’s nothing built in to SWIFT to favour dollars is there? It just means people like to transact in dollars.
So if BRIC countries developed their own payment system, most people would still use it to send dollars.
Bretton Woods created a dollar based system for world trade and this spilled over into SWIFT, the financial messaging system. Strangely SWIFT is governed by EU law given where it is based. The EU would need to pass laws excluding countries/organizations from it.
The whole world is on a dollar based financial system, SWIFT being one component of it.
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Well, that’s power not religion doing that. And money of course.
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The disconnect is that SWIFT isn’t dollar based. SWIFT is dollar agnostic. SWIFT’s predecessor banks were European because they wanted to facilitate cross-border payments in Europe.
The global financial system is dollar based. Therefore any global payment system will mostly use dollars. As I mentioned in another thread, even the BRICS development bank mostly uses dollars. A different payment system can’t change that.
How did it spill over into SWIFT in real terms? I’m genuinely interested because I don’t see any evidence of that.
For instance, a Philippino working in UAE would wire either AED or PHP back home, with the Fcy conversion done by the receiving and sending bank, respectively. No USD involved at any point. It seems SWIFT is not dollar-based at all.
In April 2023 60% of all transactions through SWIFT were in US dollars:
Looks pretty dollar based to me
That’s not what “dollar-based” means.
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Last week there was no case for gold.
No one expects any change in tune.