ASEAN Announces They Are Not Giving Up the US Dollar
The ASEAN Secretariat officially announced that the alliance is not abandoning the US dollar for trade. Secretary-General Kao Kim Hourn told AFP that ASEAN is not “giving up dollars” to mitigate risks emerging from Trump’s tariffs. The statement comes after the alliance discussed various de-dollarization plans at the 2023 summit. The bloc pushed local currency settlements for cross-border transactions to avoid using the US dollar for payments. However, ASEAN has now taken a U-turn and confirmed that it will use the US dollar for trade and transactions. While the bloc agreed that they prioritize local currencies, the USD will also be used for trade. Also Read: Dollar Reigns Supreme: 89% of World Transactions in USD ASEAN Will Not Ditch the US Dollar, Confirms Secretariat Source: AFP Standard Chartered’s Global Head of Research and Chief Strategist Eric Robertsen said that ASEAN cannot challenge the US dollar. He explained that the greenback has solid global backi...