10 sectors in the US that will be affected if ASEAN abandons the dollar

The US dollar is currently attracting stiff competition from the ever-expanding multipolar currency narrative. With BRICS officially abandoning the US dollar, a new world order appears to be emerging where local currencies dominate. New members of ASEAN, a robust ten-nation energy pact, are joining the queue, which could hamper some US dollar prospects if they decide to join forces with leading global allies.

Read also: US dollar: here’s why the idea of ​​de-dollarization is a big lie

A multipolar concept shaping the world

Rumors of ASEAN dumping the US dollar gained momentum in 2023 as countries considered adopting a local currency narrative to promote regional supremacy.

The ASEAN countries, which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, earlier held a meeting to end their dependence on the US dollar, euro, yen and British pound.

This was done primarily to catapult the development of local currencies and help them rise on the global currency radar. Members also shared comments on why nations need to stop using the US dollar in the long term, citing US sanctions as a key issue.

“Be very careful. We must remember the sanctions imposed by the US on Russia. Visa and Mastercard may be a problem,” said Indonesian Prime Minister Widodo during the event.

With rising U.S. debt ratios and a deteriorating economic situation, the United States is now attracting problems that could hamper the development of the U.S. dollar in the long run. Decades ago, the dollar remained unbalanced, but as the ASEAN and BRICS narrative gathers pace, the US dollar may now face serious problems hampering its global growth.

Read also: Chinese yuan weakens US dollar: what is the future of the dollar?

10 sectors in the US that will be affected if ASEAN dumps the US dollar

The top ten sectors in the US that could feel crushing pressure as ASEAN countries dump the dollar are:

• Financial services
• Trade
• Production
• Tourism
• Technology
• Agriculture
• Energy
• Retail sales
• Transport
• Property

Why are regional currencies gaining strength?

The multipolar concept, a term coined to describe the basket of currencies that drive the financial system, is very popular today.

With the intense economic competition prevailing in space, nations have come up with new prospects and offers that can help them deal better by offering quirky services and products in return.

Read also: What’s happening between the US dollar and the Japanese yen today?

This narrative somewhat threatens the global dominance of the US dollar as countries now have alternative currencies to choose from, fueling a multipolar regime. The United States’ rising debt ratios, weak administrative infrastructure and its ability to weaponize the dollar for geopolitical manipulation are currently openly debated. This further lowers the currency’s rating, forcing other regions such as ASEAN to compete for global power and recognition.

“This dominance continues, in the case of the United States using its power of influence to achieve socio-political goals by imposing sanctions. And by excluding non-compliant governments and organizations from the global trade and economic systems in which the United States resides is dominant. The best example of this are the sanctions imposed on Russia. And also some Russian citizens in connection with their invasion of Ukraine. In the hope that we can influence their ability to wage war,” Sable International said