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De-dollarization gains speed: ASEAN nations move away from greenback

According to CNBC, citing the Association of Southeast Asian Nations (ASEAN), de-dollarization is accelerating across the region. The trend of moving away from the US dollar is firmly underway and shows no sign of stopping. ASEAN, in effect, is charging ahead like a tank, pushing the dollar aside.

ASEAN nations have intensified efforts to reduce dollar reliance, expanding the use of local currencies in trade and investment. ING currency strategist Francesco Pesole noted that the inconsistent trade policies of US President Donald Trump and the sharp decline in the greenback contributed to this shift.

The trend is particularly pronounced in Asia, though other economies are also reducing their exposure to the US dollar. The dollar’s share of global foreign exchange reserves fell from 70% in 2000 to 57.8% in 2024. Since the beginning of 2025, the dollar index (DXY) has dropped more than 8%, analysts emphasize.

Many investors and policymakers have come to view the US dollar as a tool of leverage, or even a weapon, in trade negotiations. Lin Li, head of Asia global markets research at MUFG, explained that de-dollarization is accelerating as Asian economies seek to reduce risks by relying more on their own currencies.

Earlier, currency strategist Abhay Gupta predicted that ASEAN de-dollarization would continue to grow. The BRICS nations have also been actively developing their own payment system to bypass SWIFT and reduce dependency on the greenback. China, for its part, is promoting bilateral trade settlements in yuan.

Experts note, however, that the de-dollarization trend could slow if the US pulls back from its aggressive use of sanctions. Many central banks remain cautious about holding large dollar reserves. Still, despite some nations cutting back on dollar usage, the greenback remains the world’s dominant currency. No other global currency can match the dollar’s liquidity or the depth of its bond and credit markets, experts conclude.

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