Asia diversifies from US dollar with Chinese yuan, gold, bitcoin driving change

South China Morning Post

30-05-2025

A growing number of
Asian economies are cautiously moving away from the US dollar by creating alternative trade agreements and increasing their investments in assets such as gold and
digital currencies – a trend that analysts say signals a longer-term shift toward a more multipolar monetary system.
A recent study by foreign exchange platform Forex Complex pointed to three primary indicators of de-dollarisation: a reduced share of US dollars in national reserves, a rise in gold's share, and growing use of alternative currencies in bilateral trade.
Singapore , Indonesia and Japan ranked among the top 10 countries making the most progress on this front.
'Asian nations are increasingly seeking to reduce reliance on the US dollar, especially in response to sanctions, tariffs, and rising geopolitical risks,' said Chris Lodge, vice-president at foreign exchange brokerage FXTM.
While the dollar continues to dominate global markets – accounting for nearly half of SWIFT payments and over 80 per cent of foreign exchange trades – Lodge said diversification efforts are gaining traction in
Southeast Asia , the
Middle East , and among
Brics members.
In Asia, more transactions are being conducted in
Chinese yuan , followed by the euro and Emirati dirham in select bilateral arrangements, he added.