Dollar's Dominance in Asia Declines as Euro Debt Increases
December 7, 2025373 AufrufeLesezeit: 2 Minuten
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Recent data indicates a gradual shift in Asian financial markets, with borrowers increasingly opting for the Euro over the US Dollar. This trend reflects a growing desire to diversify investment portfolios and lessen dependence on the US currency. Euro-denominated bond issuances in the Asia-Pacific region have reached a record 23% of total issuance volume this year, marking a 6% increase compared to 2024, according to Bloomberg data.
While the Dollar still dominates the majority of financing deals, its market share is slowly declining as Euro issuances have surged by 75% to €86.4 billion ($100.7 billion). Analysts suggest that these changes are driven by strategic factors, including lower financing costs in Euros and investors' desire to mitigate risks associated with a heavy reliance on the Dollar.
These developments reflect the impact of trade policies under former President Donald Trump and his pressure on the Federal Reserve, which have undermined investor confidence in the Dollar. This has prompted some Asian borrowers to consider the Euro and other assets as viable alternatives. Experts have also noted that the narrowing interest rate differential between the Euro and Dollar has enhanced the appeal of Euro financing.
Notable Euro issuances this year include a €4 billion bond issuance by China and a €5.5 billion bond issuance by Japanese telecommunications firm NTT Inc., marking the largest Euro issuance by an Asian company in 2025. This underscores a growing trend towards multi-currency usage in debt markets and confirms a shift in international financing towards a more pluralistic world of financial poles.
While the Dollar still dominates the majority of financing deals, its market share is slowly declining as Euro issuances have surged by 75% to €86.4 billion ($100.7 billion). Analysts suggest that these changes are driven by strategic factors, including lower financing costs in Euros and investors' desire to mitigate risks associated with a heavy reliance on the Dollar.
These developments reflect the impact of trade policies under former President Donald Trump and his pressure on the Federal Reserve, which have undermined investor confidence in the Dollar. This has prompted some Asian borrowers to consider the Euro and other assets as viable alternatives. Experts have also noted that the narrowing interest rate differential between the Euro and Dollar has enhanced the appeal of Euro financing.
Notable Euro issuances this year include a €4 billion bond issuance by China and a €5.5 billion bond issuance by Japanese telecommunications firm NTT Inc., marking the largest Euro issuance by an Asian company in 2025. This underscores a growing trend towards multi-currency usage in debt markets and confirms a shift in international financing towards a more pluralistic world of financial poles.
