Payments in sterling on the rise

The British pound sterling is experiencing its most popular period since Brexit. According to SWIFT data, the use of sterling in global payments has been on the rise in recent months. Since mid-2016, which coincided with the UK's withdrawal from the EU, bank customers have been using the British pound for global payments. According to the data, the share of global payments made in sterling rose to 7.845 percent in October. This was an increase of approximately 2 points compared to the previous month. As of October, the pound became the most popular currency after the dollar and the euro. The share of transactions made in dollars fell to 42.1 percent, while the share of payments made in euros fell to 34.4 percent. The Japanese yen ranked fourth in payments, followed by the Chinese yuan, Canadian dollar and Australian dollar, respectively. It was observed that the share of transactions made in yuan fell to its lowest level in a year at 2.13 percent due to effects such as the Covid-19 policy and the real estate crisis. Despite the decline in sterling this year, its increased use was notable. The pound, which rebounded from its lows in September, is still among the worst-performing emerging market currencies of 2022. Despite its recent rally, the currency has lost about 12% of its value against the dollar this year. The yuan has also lost 17% of its value against the dollar this year. The economic outlook remains uncertain, with the British government’s budget plans and Russia cutting energy supplies.