Global trade invoicing patterns: new insights and the influence of geopolitics

This special feature uses new data collected by ECB and IMF staff from over 120 countries to examine trends in global trade invoicing currency patterns up to 2023. The analysis reveals several key insights: the US dollar and the euro remain the most prominent primary invoicing currencies, together accounting for over 80% of global trade invoicing. While the US dollar serves as a global vehicle currency, the euro's role as a vehicle currency is particularly significant in Europe and parts of Africa. Despite some growth, the renminbi's share in global trade invoicing remains very low, at less than 2%, although it is increasing in the Asia-Pacific region and in some parts of Europe. Finally, this special feature presents some evidence of a relationship between shifts in invoicing currency patterns and geopolitical alignment, especially since Russia's full-scale invasion of Ukraine. This evidence is most marked for certain countries which have distanced themselves geopolitically from the West, such as Russia, Belarus, Kyrgyzstan and Uzbekistan, where the share of exports invoiced in the US dollars and euro was 10-50 percentage points lower in 2023 than in 2015-19. JEL Classification: F14, F31, F44