Karishma Shah
A decade ago, a traveler from Singapore visiting Bangkok or Jakarta would likely rely on U.S. dollars or a global credit card to settle the bill. Today, things are changing. A Malaysian tourist in Thailand can pay for street food by scanning a QR code, with money instantly debited from their account in ringgit and credited to the vendor in baht. Such small conveniences are part of a broader, quiet revolt in Southeast Asia – a concerted effort by regional governments to reduce their reliance on the U.S. dollar in trade and finance.
For now, the U.S. dollar remains dominant in the region’s commerce. Between 80 and 90 percent of exports from Southeast Asian countries are invoiced in USD, reflecting the greenback’s long standing role as the default currency for pricing goods. Most regional currencies are also informally tethered to the dollar’s movements, and central banks stockpile dollars as reserves for stability. This dollar dependence has historically served Southeast Asia well by facilitating trade and investment. But recent events have exposed its downside and galvanized a push for change.
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