Is Asia ditching the dollar? China’s yuan, gold, and bitcoin drive trade shifts
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.
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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.
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In Asia, more transactions are being conducted in Chinese yuan, followed by the euro and Emirati dirham in select bilateral arrangements, he added.
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