The US dollar is soaring, surging high as the greenback resumed rallying soon after Trump was crowned as the 47th president of the United States. Trump has vowed to eliminate de-dollarization drives, promising to inflate the greenback against major currencies. His statement, however, may prove lucrative for the US. Still, it may cost other nations, preferably emerging economies like ASEAN, which may be compelled to explore alternatives other than the US dollar.
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ASEAN To Dump The US Dollar?
President Donald Trump has emerged as the ultimate winner and will soon be running for office as the 47th US president. Trump is dubbed a force to reckon with, especially when it comes to policies bolstering and aiming to bolster the frail US dollar. The US dollar has lately been an active part of the global de-dollarization narrative, with countries actively looking forward to exploring alternatives to the USD.
The fact that the US dollar has constantly been weaponized is one of the leading bones of contention driving nations further away from the US dollar. Another primary reason would be the rising US debt metrics, which have lately been distressing the US economy and, in turn, are impacting global economies in a negative sense.
In the middle of this, ASEAN nations have made significant strides in exploring different currency options apart from the US dollar. The bloc is exploring the Yuan as one of the chief currencies with which to interact, with its trade statistics with China rising to 20%.
“ASEAN accounted for 15 percent of China’s total trade in 2023. Up from 10 percent in 2010. while China accounted for 20 percent of ASEAN’s total trade in 2023. Up from 12 percent in 2010. Further integration could be propelled by the Regional Comprehensive Economic Partnership. Dubbed the world’s largest free-trade agreement, which covers 15 economies in the Asia-Pacific region.”
At the same time, ASEAN has been quite vocal about the weaponization of the HS dollars, urging nations to embrace the local currency narrative and ditch USD for trade.
“We must remember the sanctions imposed by the U.S. on Russia.” Indonesian President Joko Widodo remarked
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10 Nations That May Ditch the US Dollar
The president-elect has pledged allegiance towards reviving the USD, which includes imposing taxes on nations moving away from the dollar. This plan may ultimately backfire, as nations may actively start exploring alternatives to the US dollar.
“A stronger USD would weaken its role as a reserve currency. Economists at Allianz, an international financial services firm, wrote in a June 29 report. “If access to USD becomes more expensive. Borrowers will search for alternatives.”
In light of this, these ten ASEAN nations may move away from the dollar to look for able currency alternatives.
- Brunei
- Cambodia
- Indonesia
- Laos
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Myanmar
- Thailand
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