{
  "title": "Currency Usage for Cross Border Payments",
  "publication": "IMF Working Papers, March 24, 2023",
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  "summary": "While the global usage of currencies other than the U.S. dollar and the euro for cross-border payments remains limited, rapid technological (e.g. digital money) or geopolitical changes could accelerate a regime shift into a multipolar or more fragmented international monetary system.",
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      "heading": "Summary findings",
      "content": "- Global usage of currencies other than the U.S. dollar and the euro for cross-border payments remains limited.\n- Rapid technological changes (e.g., digital money) or geopolitical changes could accelerate a regime shift into a multipolar or more fragmented international monetary system.\n- The analysis uses the Swift database of cross-border payments to empirically estimate:\n  - the importance of legal tender status,\n  - geopolitical distance,\n  - other variables,\n  - relative to large inertia effects for currency usage.\n- Several forecasting simulations are performed to assess the role of these variables in shaping the future payments landscape.\n- The results suggest a substantially more fragmented international monetary system would be unlikely in the short and medium term.\n- The impact of new technologies remains highly uncertain.\n- Much more rapid geopolitical developments than expected could accelerate the transformation of the international monetary system towards multipolarity."
    },
    {
      "heading": "Methodology and analysis highlights",
      "content": "- Data source: Swift database of cross-border payments (used as the empirical basis).\n- Empirical focus:\n  - legal tender status,\n  - geopolitical distance,\n  - other determinants of currency choice,\n  - inertia effects in currency usage.\n- Analytical approach: forecasting simulations to explore alternative future payments landscapes under varying assumptions about technology and geopolitics.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2023/03/24/currency-usage-for-cross-border-payments-531324"
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    "Authors: Hector Perez-Saiz, Longmei Zhang, Roshan Iyer",
    "Published: March 24, 2023",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400235375.001",
    "Global usage of currencies other than the U.S. dollar and the euro for cross-border payments remains limited.",
    "Rapid technological changes (e.g., digital money) or geopolitical changes could accelerate a regime shift into a multipolar or more fragmented international monetary system.",
    "The analysis uses the Swift database of cross-border payments to empirically estimate:",
    "Several forecasting simulations are performed to assess the role of these variables in shaping the future payments landscape.",
    "The results suggest a substantially more fragmented international monetary system would be unlikely in the short and medium term.",
    "The impact of new technologies remains highly uncertain.",
    "Much more rapid geopolitical developments than expected could accelerate the transformation of the international monetary system towards multipolarity.",
    "Data source: Swift database of cross-border payments (used as the empirical basis).",
    "Empirical focus:",
    "Analytical approach: forecasting simulations to explore alternative future payments landscapes under varying assumptions about technology and geopolitics.",
    "**Working Paper**"
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