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ASIA AND THE DOLLAR Asia is making major moves away from the US due to concerns over US geopolitical policies, major shifts in monetary policy and a massive amount of hedging now taking place. These factors are driving de-dollarisation across the entire region. ASEAN countries are committed to significantly increasing the use of local currencies for trade and investment. This is part of their economic community strategic plan running through to 2030. The goal is to reduce the shocks associated with exchange rate fluctuations by promoting local currency settlements and strengthening regional payment connectivity, all outside the US dollar system. At the same time, investors and market officials are starting to believe the dollar has been over leveraged and weaponised in trade negotiations. In response, these countries are standing up, reassessing their heavily USD-weighted portfolios, and taking action. Individuals and businesses are converting US dollar savings back into local currencies, while large investors are more actively hedging their foreign investments.

Published Nov 03, 2025Updated Nov 03, 20253 min read
ASIA AND THE DOLLAR Asia is making major moves away from the US due to concerns over US geopolitical policies, major shifts in monetary policy and a massive amount of hedging now taking place. These factors are driving de-dollarisation across the entire region. ASEAN countries are committed to significantly increasing the use of local currencies for trade and investment. This is part of their economic community strategic plan running through to 2030. The goal is to reduce the shocks associated with exchange rate fluctuations by promoting local currency settlements and strengthening regional payment connectivity, all outside the US dollar system. At the same time, investors and market officials are starting to believe the dollar has been over leveraged and weaponised in trade negotiations. In response, these countries are standing up, reassessing their heavily USD-weighted portfolios, and taking action. Individuals and businesses are converting US dollar savings back into local currencies, while large investors are more actively hedging their foreign investments.