Middle East still without agreement
The share of the dollar in international trade transactions rose in March to a record level of 51,1%, according to data from the Swift agency (Society for Worldwide Interbank Financial Telecommunication).
For comparison, in the previous month this figure was at 49.2%.
In second place was the euro, whose share in transactions carried out via the SWIFT system was about 21%.
The next positions were taken respectively by the British pound, the Japanese yen, the Chinese yuan and the Canadian dollar.
Experts say the role of the USD increased due to the ongoing conflict in the Middle East, aided by changes in oil prices among other factors.
Read also: Suspicious oil market transactions. The insiders earned billions of dollars. “A terrifying example of market manipulation.”
This commodity is in most cases priced in U.S. dollars on world markets, so rising energy prices can translate into increased demand for the dollar, and thus a larger scale of transactions denominated in this currency.
The U.S. and Israel attack on Iran at the end of February shocked financial markets, and the almost complete closure of the Strait of Hormuz caused a sharp drop in supplies from the main oil and gas producers of the Persian Gulf.
The failure of peace talks between Washington and Tehran has increased concerns about the end of the conflict, which Donald Trump repeatedly mentioned.
Bloomberg, citing anonymous sources, reports that Iran’s agreement to further direct peace talks with the United States is hindered by threats directed by President Donald Trump via social media.
Primarily, this concerns posts on the Truth Social platform, which, according to Iranian authorities, aim to humiliate Tehran’s leaders and discourage them from reaching an agreement.
“The longer this situation persists, the clearer it becomes that the destructive effects of this conflict will be felt for many more months, if not longer,” said Mona Yacoubian, director of the Middle East program at the Center for Strategic and International Studies.
“Perhaps the disruptions are so severe and undeniable that paper trading will eventually adjust to the reality of limited supply and what that means for physical markets,” she added.
Source: Bloomberg.
Read also: Will the dollar rate return to 4 PLN? The land invasion of Iran still poses a threat. Expert: “Unlikely, but still potentially possible.”
See also: Will the dollar rate surprise again? The expert issued a forecast for USD/PLN and EUR/USD. “It’s hard for me to believe there will be no more fires.”
Dollar and euro rates on Friday, April 24
The dollar rate to the zloty on Friday, April 24 is at 3,63 PLN.
Chart. Dollar rate to the zloty (USD/PLN)
Source: TradingView.
The euro rate to the dollar reaches 1,16 USD.
Chart. Euro rate to the dollar (EUR/USD)
Source: TradingView.
See also: Dollar rate before the “nervous and dynamic” move, euro waiting for a drop? The expert issued a forecast for USD/PLN and EUR/USD
Source: Bloomberg.
