IMF Working Papers

Patterns of Invoicing Currency in Global Trade in a Fragmenting World Economy

By Emine Boz, Anja Brüggen, Camila Casas, Georgios Georgiadis, Gita Gopinath, Arnaud Mehl

September 12, 2025

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Format: Chicago

Emine Boz, Anja Brüggen, Camila Casas, Georgios Georgiadis, Gita Gopinath, and Arnaud Mehl. "Patterns of Invoicing Currency in Global Trade in a Fragmenting World Economy", IMF Working Papers 2025, 178 (2025), accessed September 13, 2025, https://doi.org/10.5089/9798229024495.001

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper presents the most comprehensive and up-to-date panel dataset on global trade invoicing currency and examines recent pattern shifts with a focus on geopolitical alignment. Using data for 132 countries from 1990 to 2023—including new coverage of the Chinese renminbi—we document five key findings. First, the US dollar remains dominant, with global invoicing shares broadly stable. Second, renminbi use has grown steadily and expanded beyond Asia, though it remains modest. Third, countries not geopolitically aligned with the US continue to rely on the dollar, though this reliance has declined in a few key economies. Fourth, since 2021, the correlation between the use of a given invoicing currency and the geopolitical distance to its issuer has become more negative, reflecting growing polarization. Fifth, there is no robust evidence consistent with effective policy initiatives to reduce dollar reliance in oil exports. These findings highlight the resilience of dominant currencies and suggest emerging fragmentation in invoicing patterns along geopolitical lines.

Subject: Commodities, Currencies, Currency markets, Exports, Financial markets, Imports, International trade, Money, Oil, Oil exports

Keywords: Currencies, Currency markets, Dominant-currency paradigm, Exports, Geopolitical alignment, Global, Imports, Oil, Oil exports, Trade invoicing currency

Publication Details

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