The US Dollar has reasserted its dominance in global finance, capturing a staggering 49% share of international payments, a 12-year high after a significant 9% surge over the past two years.

According to the economics outlet Kobeissi Letter on the microblogging platform X (formerly known as Twitter), data from SWIFT shows that the Euro, once a significant challenger to the U.S. dollar, experienced a precipitous decline.

The Euro’s share of global payments has plummeted from approximately 39% to a decade low of around 21% in a dramatic fall that means the “US dollar remains the most dominant global currency and it’s not even close.” Per the outlet, the Chinese Yuan’s usage, however, rose from around 2% last year to now stand near 5%.

It’s worth noting that there are payments systems outside of SWIFT, including SEPA, a payments system used for transactions within Europe. SWIFT, however, remains the dominant global transfers system, used by over 200 countries.

The U.S. dollar’s dominance is growing at a time in which the Federal Reserve is “attempting something unprecedented,” as inflation in the country has dropped by a whopping 5.8% over the last two years – the largest drop since the 1980s – to stand at 2.4% in September.

The interest rate cuts notably come after the Federal Reserve “conducted one of the most aggressive rate hike cycles in history, raising rates from near zero to 5.5% in 16 months.”

As reported, a “concerning” economic indicator in the United States is currently pointing to an incoming recession after accurately predicting the last recessions over the last 75 years accurately.

Despite these metrics, JPMorgan Chase CEO Jamie Dimon is instead worrying about the global economic situation ver ongoing geopolitical threats coming from an “evil axis” that shows “that conditions are treacherous and getting worse.”

He noted that inflation is moving down and the US economy seemingly avoided a recession, although “several critical issues remain,” including “large fiscal deficits, infrastructure needs, restructuring of trade and remilitarization of the world.”

Dimon has been warning about geopolitical instability for over an year and repeatedly called it the largest threat to global economy. He has said, at the Financial Markets Quality Conference in Washington last month, that “Iran, North Korea and Russia, I think you can legitimately call them (an) evil axis.”

Featured image via Unsplash.