Latest news with #deDollarisation
South China Morning Post
30-05-2025
- Business
- South China Morning Post
Asia diversifies from US dollar with Chinese yuan, gold, bitcoin driving change
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.
South China Morning Post
07-05-2025
- Business
- South China Morning Post
Taiwan currency's surge a ‘warning shot' for Asia's de-dollarisation: analysts
The New Taiwan dollar's recent surge, along with the appreciation of other Asian currencies, suggests a deepening of regional de-dollarisation as investors rethink their investments in the US currency amid Washington's 'extremely predatory' behaviour towards foreign countries, analysts said. Advertisement Economies like Taiwan, with a historically high exposure to assets denominated in US dollars, have taken a foreign exchange-led hit after the American currency weakened in recent weeks, wrote Francesco Pesole, foreign exchange strategist at Dutch bank ING, in a note on Tuesday. 'Local players are now seeking greater US dollar hedging, as well as starting to diversify away from US investments.' The shift from US assets is likely to contribute to the continued devaluation of US dollars, supporting a 'bearish narrative' for the currency, Pesole added. The New Taiwan dollar's surge hit a pause on Tuesday, closing at NT$30.28 to US$1 from Monday's NT$30.145 – ending a strengthening streak observed since April 24. It traded at NT$30.244 as of Wednesday afternoon. Advertisement Taiwan's central bank published a statement on Monday urging manufacturers to remain calm and avoid 'dumping US dollars due to irrational expectations based on over-exaggerated or untrue analyses in the market'.
South China Morning Post
07-05-2025
- Business
- South China Morning Post
Taiwan dollar surge ‘a warning shot' in Asia trend towards de-dollarisation: analysts
The New Taiwan dollar's sudden surge in recent days, along with the appreciation of other Asian currencies, highlights the prospect of deepening regional de-dollarisation as investors rethink their investments in the US currency amid Washington's 'extremely predatory' behaviour towards foreign countries, analysts said. Advertisement Economies like Taiwan, that historically have very high exposure to assets denominated in US dollars, have taken a foreign exchange-led hit after the currency weakened in recent weeks, wrote Francesco Pesole, foreign exchange strategist at Dutch bank ING, in a note on Tuesday. 'Local players are now seeking greater US dollar hedging as well as starting to diversify away from US investments.' The shift away from US assets will likely contribute to the continued devaluation of US dollars, supporting a 'bearish narrative' for the currency, Pesole added. The New Taiwan dollar's surge hit a pause on Tuesday, closing at NT$30.280 to US$1 from Monday's NT$30.145 – ending its jump since April 24. It traded at NT$30.244 as of 2.50pm on Wednesday. Advertisement Taiwan's central bank published a statement on Monday urging manufacturers to remain calm and avoid 'dumping US dollars due to irrational expectations based on over-exaggerated or untrue analyses in the market'.
