Global currency payment statistics show that the usage rate of the US dollar has risen to 42.6%, topping the list of international currencies.

The usage rate of the euro, the second-largest international currency, has shown a clear downward trend, falling to 31.7%.

What are the reasons for the starkly different performances of these two commonly used international currencies?

Despite facing some challenges and uncertainties, the international usage rate of the US dollar has not decreased; it has even shown a trend of growth.

Under the impact of the COVID-19 pandemic, global economic development has been severely hindered, and the United States is no exception.

Its domestic economic situation has long been a mess.

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Coupled with the United States' unilateral actions on the international stage and its "America First" foreign policy, many countries around the world have begun to move towards de-dollarization.

Despite these disadvantages, why does the usage rate of the US dollar continue to rise instead of falling?

This is mainly due to the following reasons: 1.

As the currency of the world's largest economy, the US dollar still has the deepest, most active, and most stable financial market globally.

The scale and liquidity of the US financial market continue to dominate globally, making it the choice for global investors and traders for cross-border capital flows and reserve currency allocation.

2.

The United States' economic strength and innovation capabilities remain robust.

Despite facing challenges, including trade frictions, structural issues, and political uncertainties, the US economy remains relatively stable.

It also maintains a leading position in global technology and innovation in some areas.

This makes the US dollar still highly attractive in international transactions.

3.

As the world's reserve currency, the US dollar has a broad international acceptance.

Currently, more than 60% of the world's foreign exchange reserves are composed of US dollars, which strengthens the position of the US dollar as an international payment and reserve currency.

The stable monetary policy of the US government and the Federal Reserve also supports the international usage rate of the US dollar.

The Federal Reserve's relatively prudent monetary policy, focusing on global economic trends and trade environments, helps to enhance market confidence in the US dollar.

Trade agreements and currency swap arrangements signed by the US government with other countries also help to strengthen the position of the US dollar in international payments.

Despite some challenges and uncertainties, the international usage rate of the US dollar remains stable and even shows a trend of growth.

This is due to the combined effects of the advantages of the US financial market, economic strength and innovation capabilities, reserve currency status, and prudent monetary policy.

In stark contrast, the euro has started to decline under the impact of this international environment, with a clear downward trend in its usage rate.

Economic issues within the eurozone and the impact of the European debt crisis have challenged the euro's position in the international market.

Although the European Union has been committed to enhancing the international status of the euro, it still faces significant challenges.

The main reasons for the decline in the international usage rate of the euro in recent years are: 1.

Economic issues within the eurozone and the impact of the European debt crisis have led to instability in the euro, weakening investor confidence.

This internal instability has led investors to question the international role of the euro, resulting in a decline in its international usage rate.

2.

The European Union has been committed to enhancing the international status of the euro but faces significant challenges in some areas.

Compared to the US dollar, the development of the euro's international payment system is relatively lagging, lacking an international payment system that can match the efficiency and convenience of the US dollar payment system.

Additionally, the monetary policy decisions of the European Central Bank and the fiscal coordination among European countries also affect the international usage rate of the euro.

3.

Changes in the global economic landscape have also impacted the international usage rate of the euro.

In recent years, the rise of emerging market economies and Asian countries has led some regions to seek diversified currency payment settlement methods.

This has put the euro in competition with other currencies, reducing its international usage rate.

Political uncertainties and geopolitical risks have also negatively impacted the international usage rate of the euro.

Trade disputes between Europe and other countries and geopolitical instability have also had a certain impact on the international usage rate of the euro.

The main reasons for the decline in the international usage rate of the euro in recent years include internal economic issues and instability within the eurozone, lagging development of payment systems and monetary policy, changes in the global economic landscape, and political and geopolitical risks.

These factors have weakened investor and trader confidence in the euro, leading to a decline in its position on the international stage.

With the construction of the Belt and Road Initiative in recent years, China's international status has rapidly improved.

The Chinese yuan is also being used as a payment currency by more and more countries.

However, it must be acknowledged that the yuan still needs to overcome some difficulties and challenges in international circulation.

The convertibility of the yuan needs to be further improved.

Although China has taken a series of measures to promote the internationalization of the yuan, its capital account has not yet fully opened, limiting its use in international trade and finance.

The liquidity and credibility of the yuan also need to be further strengthened.

Compared to the US dollar and the euro, the yuan is still relatively less used in the international market, and the trust of investors and traders in the yuan needs to be improved.

However, with the construction of the Belt and Road Initiative in recent years, the international status of the yuan has been significantly enhanced.

It is believed that the yuan, as China's currency, will gradually play a more important role on the international stage in the near future.

Overall, the major changes in global currency payments reflect the evolution of the global economic landscape and the differences in the strength of various countries.

The status of the US dollar continues to rise, the euro faces challenges in the international market, and the internationalization of the yuan still faces some challenges.

However, with the continuous development of China's economy and efforts to promote the internationalization of the yuan, it is expected that the yuan will play a more important role in the future, continuously enhancing its international status.