A mix of geopolitical uncertainties, monetary shifts, and currency hedging is prompting a meaningful move toward de-dollarization across the region.

KEY POINTS

While de-dollarization is not exactly a new phenomenon, the narrative has changed.

De-dollarization in ASEAN is expected to pick up pace, according to the Bank of America.

Some Asian economies have the greatest potential to repatriate their foreign earnings or assets back to their local currencies.

  • ToadOfHypnosis@lemm.eeEnglish
    541·
    2 days ago

    This will have far larger long term consequences than most people realize. This could cripple our economy if the dollar loses reserve currency status.

  • Rentlar@lemmy.caEnglish
    58·
    2 days ago

    Well we know that any power the world gives to the United States can be used by a petulant, insecure man-baby to serve nobody’s ends but his own.

    So yeah, America, if you had made better decisions, you would still be deserving of the title of the world’s reserve currency. But here we are, times are a-changing.

        • queermunist she/her@lemmy.mlEnglish
          283·
          2 days ago

          A universal global currency isn’t a bad idea, necessarily, but putting all that power in the US’s hands was always bad. Any time anyone tried to do anything the US didn’t like they’d get slammed with structural readjustment and sanctions and blockades and regime change. It was always a tool of underdevelopment and imperialism.

          Ask Cuba how great it was that the dollar was the reserve currency.

          • phdepressed@sh.itjust.worksEnglish
            84·
            2 days ago

            That’s a problem no matter who is in charge. Think China, Russia, etc would act any different with that same power? Theoretically, a blockchain currency could be a solution but as is they’re either a scam or investment rather than currency.

            • r3g3n3x@lemmy.worldEnglish
              12·
              1 day ago

              It is the solution. You want an asset not liquid as what backs the currency. Proof of stake is scam/gambling. Proof of work is investment/asset. There’s only one established game in town.

    • Match!!@pawb.socialEnglish
      71·
      2 days ago

      American here, I’m hoping the diminishing of the American empire will finally allow for people’s power to take hold in the government. Something about China and crisis and opportunity.

      • Bravo@eviltoast.orgEnglish
        6·
        1 day ago

        I don’t think history supports that prediction. Far more likely that America will follow the trajectory of post-USSR Russia. Not as extreme of course, but I think the normalization of open kleptocracy is already on display.

  • ramble81@lemmy.zipEnglish
    161·
    2 days ago

    Keep an eye on Hong Kong. It’s locked within a range to the USD. I expect to see an announcement of a switch to the Yuan soon.

  • DandomRude@lemmy.worldEnglish
    191·
    2 days ago

    That doesn’t surprise me, because Drump’s absurd import tariffs are interpreted by numerous economists as a sign that the US is actually bankrupt.

    Judging by its national debt and weak economy, the US would probably have been bankrupt years ago if the dollar weren’t a reserve currency. That’s precisely why it’s so absurd.

    The so-called Mar-a-Lago Accord, which is anything but an agreement, seems to me to be a desperate attempt at blackmail, playing off the (conventional) military power of the United States against the rest of the world - as far as I know, most economists consider this to be completely bonkers.

    I, on the other hand, think that this serves two main purposes: to maintain the illusion among the US population that the US is still the superpower it was in the 1980s (it is not), and to personally enrich the US president and his partners.

  • UnderpantsWeevil@lemmy.world
    English
    141·
    2 days ago

    Petrodollar has value because its used to purchase petroleum from the Saudis.

    If you’re not using dollars to buy Saudi petroleum, you need a lot less of them.