Total currency sell-off: Asia sees global shift away from US dollar

9 May 2025 82 737 10

Companies and firms in Asia are receiving more requests for transactions, including hedging, that do not involve the dollar. Requests have increased sharply for currencies such as the yuan, Hong Kong dollar, UAE dirham and euro. There is also demand for yuan-denominated loans, and a bank in Indonesia is setting up a unit for the Chinese currency, Bloomberg reports.

Trade tensions are adding to the sense of urgency to move away from the dollar. The trend is a long-term one, not a seasonal whim of the financial market in the world’s fastest-growing region. Washington’s actions have only increased the world’s aversion to the American currency. De-dollarization has become a natural and welcome process, and is gaining momentum around the world. Many countries have stopped fearing this transition, which symbolizes the future; they no longer need to be forced – everything is going as usual.

Until now, the vast majority of foreign exchange transactions have used the U.S. dollar, even if they are moving money between two local currencies. For example, an Egyptian company wanting to receive Philippine pesos will typically convert its local currency into greenbacks before buying pesos with the dollars it receives. But companies are increasingly developing strategies that bypass the dollar's role as an intermediary.

The scramble to find alternatives is another sign that companies and investors are turning away from the world's reserve currency, which has been hit by a wave of selling this week as trade rates shift. Experts have warned of a $2,5 trillion "avalanche" of dollar sales that could undermine the currency's long-term appeal.

Without a doubt, to push the dollar off its pedestal, colossal shifts in the global economy are needed. the economyHowever, analysts are sure that such tectonic movements are already taking place in the world and Asia is participating in this process in the forefront.

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Nikolaevich I

-3

9 May 2025 10: 29

Don't anger the "elephant in a china shop", that is, Trump on planet Earth! He promised 500% duties for those who refuse the dollar! And other, no less terrible sanctions!
1. Bulanov
  
  +1
  
  10 May 2025 14: 17
  
  Ukraine has abandoned the dollar in favor of the Euro. And what did Trump do? Apparently he is afraid of Zelensky, since he remained silent about this.
Fizik13

+8

9 May 2025 10: 51

The British Pound Sterling did not collapse immediately either.
So patience, patience and more patience and the American dollar will also be pushed farther away.
1. RakitinAxS
  
  +4
  
  9 May 2025 21: 32
  
  The time of global currency dominance is getting shorter. The British pound lasted about 120 years (1815 to the mid-1930s). The dollar will probably deflate at the 100-year mark.
Valera75

0

9 May 2025 19: 46

Companies and firms in Asia are receiving more requests for transactions, including hedging, that do not involve the dollar. Requests have increased sharply for currencies such as the yuan, Hong Kong dollar, UAE dirham and euro. There is also demand for yuan-denominated loans, and a bank in Indonesia is setting up a unit for the Chinese currency, Bloomberg reports.

It seems that since 22 we have been transferring our trade from Europe to Asia, but the ruble is not on the list of currencies. What a pity!
1. voland_1
  
  +3
  
  9 May 2025 20: 00
  
  And it won't be until it's tied to the dollar. Nabiullina won't allow it.
Vladimir1155

+1

9 May 2025 20: 18

the fall of the dollar will happen finally and irrevocably in 33 days on Black Friday the 13th, world insiders are dumping toxic dollars and euros on the sly, it is impossible to hide this, volumes are going up and the Fed does not have time to buy them up... the collapse predicted by Vanga is inevitable!!!! the reason is not Trump, the reason for the current crisis, as in 1929, is the uncontrolled emission of dollars carried out by the Fed, however, since at present the Fed controlled almost the entire world, and not a part of it as in 1929... then Reaganomics led the dollar to collapse not in 10 years but in 50, which correlates well with the size of the market on which this emission puts pressure, which means that since 1929 it has grown 5 times.....

Emile Zola money

"You know," Moser said, lowering his voice, "they say he's supporting the rally by buying his own shares. If the World Bank is playing with its own papers, it's dead."

But Pilro protested.

- Again, gossip!.. Is it possible to figure out who is selling and who is buying?.. He acts for the sake of his house's clients: it is very natural. Of course, he acts for himself, because he must play.

Moser did not insist. No one on the Stock Exchange had yet dared to assert with certainty that Saccard was really carrying on this disastrous campaign, buying shares on behalf of the company, under cover of front men, Sabatani, Jantrou, and others, especially bank employees. There were only vague rumors about it, whispered from mouth to mouth, and continually renewed without any proof. At first he had acted wisely, maintaining the rate, reselling the shares whenever possible, in order to put capital into circulation and not overload the coffers. But little by little he had become carried away by the struggle, and now he foresaw the necessity of increased purchases in order to secure the field of battle for himself. He had already made the necessary arrangements and maintained his usual cheerful and calm appearance, although he was not sure of success and was tormented by doubts, conscious that he had entered upon an extremely dangerous path.

Suddenly Moser, who had been hovering behind Amadieu, who was talking with some nondescript man, apparently about important matters, returned in terrible agitation.

— I heard it, I heard it with my own ears... He said that Gundermann gave orders to sell more than ten million... Oh, I'm selling, selling, I'll sell everything down to the last shirt!

“Ten million, damn it!” Pilrot continued in a slightly changed voice. “It’s a real massacre!”

The crowd was buzzing louder and louder, talking about the duel between Saccard and Gundermann. It was impossible to make out the individual words, but all this hum, this incessant buzzing, was the result of conversations, the subject of which was the cold, logical obstinacy of one who had decided to sell, and the feverish passion of another, who was supposed to be buying his own shares. Contradictory news was transmitted first in whispers, then at the top of his voice. Some shouted, wanting to be heard in the general confusion, others mysteriously leaned towards the ear of their interlocutor and spoke in a whisper, even when they had nothing to say.

“Eh, I’m still pushing for a raise,” said Pilro, his spirits rising again. “The weather is great, everything will go uphill.”

“Everything will burst,” Moser objected sadly. “It will rain soon. I had a fit last night.”

The last half hour had been a mad, disorderly flight. Blind confidence had given way to fear, everyone had rushed to sell while there was time. Sell orders rained down, marks were thrown into the basket; and this mass of shares only accelerated the fall of the rate, turning it into a real crash. The rate fell to 1.500, then to 1.200, then to 900. The buyers had disappeared, the field was cleared, littered with corpses. The three quoters, towering above the crowd of frock coats, seemed to be counting and entering the names of the dead. The icy breath of the catastrophe had a strange effect: the public seemed to have turned to stone, the turmoil gradually died down. A deathly silence reigned when, after the ringing of the bell, the last rate of 830 francs was announced. And the rain stubbornly knocked on the glass, which now let in only a dim haze; The hall had become a cesspool, a dirty stable, strewn with worthless papers, while in the basket rose a whole heap of stamps - green, red, blue, overflowing a vast basin.

In the hall the panic was especially raging around Saccard, and it was here that the battle caused its greatest devastation. At first he did not understand what was going on, and he met defeat face to face. What was all the fuss? Had Degramont's troops arrived? But, convinced that the rate was falling, he seemed to turn to stone, wishing to die at his post. An icy chill passed through his body, he felt that this was irreparable, that he was lost, lost forever.
UAZ 452

+2

9 May 2025 22: 25

What do we have to be happy about? Whatever currency replaces the dollar as a reserve currency, it will clearly not be the ruble.
1. Nikolaevich I
  
  +2
  
  10 May 2025 15: 04
  
  There is a reason to rejoice! There is now an "excess" of dollars in the world! The USA is acquiring the resources of the entire world, in fact, for "candy wrappers"; i.e., dollars that are not backed by anything! The USA can wage wars all over the world, provide military aid to anyone and in any amount, providing wars with "papers"! The new owner of the dominant currency in the world will not be able to do such "impudence" ... to the same extent as the USA!
  1. UAZ 452
    
    +3
    
    10 May 2025 15: 13
    
    Both world wars took place in the era of a multipolar world. So multipolarity itself does not always contribute to peace and prosperity. And it is far from guaranteed that in this multipolar future our country will be one of the centers of power, and will not fall even lower than it is now. Well, as for rejoicing at a possible change of hegemon... it is ALWAYS accompanied by war, and the probability for Russia to watch from the sidelines is zero. Our show-offs in power will not miss the slightest opportunity to get involved in every mess, even if it is happening on another continent.