Shift in Asian Financing: Borrowers Turn to Euro Over Dollar
December 7, 2025369 ViewsRead Time: 2 minutes
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Recent analysis reveals a notable transition in Asian financing markets, with an increasing number of borrowers choosing the euro over the US dollar. This trend reflects a strategic effort to diversify investment portfolios and lessen dependence on the American currency. According to Bloomberg data, euro-denominated bond issuances in the Asia-Pacific region have surged to a record 23% of total issuances this year, marking a 6% increase from 2024.
While the dollar remains the predominant currency for financing deals, its market share is gradually declining. Euro issuances have risen by 75%, totaling €86.4 billion ($100.7 billion). Analysts attribute this shift to factors such as lower financing costs in euros and a growing desire among investors to mitigate risks tied to dollar reliance.
This trend is also influenced by the trade policies of former US President Donald Trump and his pressure on the Federal Reserve, which have eroded investor confidence in the dollar. As a result, some Asian borrowers are turning to the euro and other assets as viable alternatives. Additionally, the reduction in the interest rate premium on euro-dollar swaps has made euro financing more attractive.
Significant euro bond issuances this year include €4 billion in Chinese bonds and €5.5 billion from NTT Inc, representing the largest euro issuance by an Asian company in 2025. These developments underscore a broader trend towards a multipolar approach in international financing, reflecting changing dynamics in global debt markets.
While the dollar remains the predominant currency for financing deals, its market share is gradually declining. Euro issuances have risen by 75%, totaling €86.4 billion ($100.7 billion). Analysts attribute this shift to factors such as lower financing costs in euros and a growing desire among investors to mitigate risks tied to dollar reliance.
This trend is also influenced by the trade policies of former US President Donald Trump and his pressure on the Federal Reserve, which have eroded investor confidence in the dollar. As a result, some Asian borrowers are turning to the euro and other assets as viable alternatives. Additionally, the reduction in the interest rate premium on euro-dollar swaps has made euro financing more attractive.
Significant euro bond issuances this year include €4 billion in Chinese bonds and €5.5 billion from NTT Inc, representing the largest euro issuance by an Asian company in 2025. These developments underscore a broader trend towards a multipolar approach in international financing, reflecting changing dynamics in global debt markets.
