US Dollar Remained Dominant for UK Businesses in 2026
Despite talk of de-dollarization, the greenback accounted for 70 percent of UK firm international payments in early 2026.
Updated on Oct. 13, 2026 in Financial Services
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In the first half of 2026, the US dollar remained the primary currency for UK businesses, accounting for 70 percent of international payments processed by iBanFirst. This dominance persists even as firms face exposure to currency volatility in markets like China and Hong Kong.
Why it matters
The resilience of dollar invoicing reflects entrenched commercial habits and the difficulty of renegotiating supply contracts to change payment currencies. Consequently, many UK businesses remain vulnerable to fluctuations in the GBP/USD exchange rate when conducting trade.
The US dollar made up 70 percent of UK international payments during the first half of 2026, a slight decline from 72 percent in 2025. A 1 percent shift in GBP/USD rates impacts the cost of a $1 million payment by approximately £7,600.
The players
iBanFirst
This international financial services company provides payment and currency hedging solutions to business clients.
The details
International contracts frequently mandate dollar invoicing, forcing UK companies to manage currency risk by using FX forward payments, a strategy utilized by 20 percent of iBanFirst UK clients. While payments to China and Hong Kong represent 25 percent of outbound UK trade, dollar usage remains robust in these corridors.
Timeline
In 2025, the US dollar comprised 72 percent of international payments for iBanFirst UK clients.
During the first half of 2026, the US dollar accounted for 70 percent of UK client international payments.
On October 13, 2026, the GBP/USD exchange rate was approximately 1.32.
Market Landscape
This data shows that corporate supply chains operate with a inertia that resists the ongoing debate regarding international de-dollarization. By maintaining dollar-based contracts, UK firms are effectively prioritizing established relationships over the diversification of currency risk.
Businesses that rely on dollar-denominated contracts should monitor exchange rate volatility, as even a 1 percent movement significantly impacts the cost of large international payments. Hedging tools like FX forward payments may help companies mitigate these potential price increases.
The takeaway
Commercial inertia often outweighs geopolitical shifts when it comes to international trade invoicing. Companies should consider whether the stability of existing contract terms outweighs the financial risks posed by continued exposure to a single foreign currency.
Further reading
Learn more about market trends in Financial Services.
Source note: This article includes information reported by Financial IT.
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