ASEAN accelerates de-dollarization

US erratic policies prompt move as renminbi gains traction, experts say

Whenever he travels around the Southeast Asian region or to China, Malaysian private equity investor Ian Yoong Kah Yin always uses his e-wallet to settle all payments. Yoong, a former investment banker, seldom travels with a big chunk of cash, preferring to use an app he downloaded on his phone so he can use a QR code to pay in Malaysian ringgit or any local currency.

Yoong said using a QR code is not only convenient but also cuts transaction costs as he does not need to convert ringgit to US dollar first and then to another local currency, avoiding double currency conversion rates.

The reduced role of the US dollar and the growing role of the Chinese yuan and local currencies used by members of the Association of Southeast Asian Nations is "inevitable", according to Yoong, who noted there are about 100 banks in the ASEAN region that are part of the yuan-based Cross-border Interbank Payment System, or CIPS.