1 00:00:02,720 --> 00:00:07,600 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,360 --> 00:00:12,440 Speaker 2: On a Friday afternoon earlier this month, Bloomberg's Ruth caston 3 00:00:12,600 --> 00:00:17,040 Speaker 2: was monitoring Asian markets and hoping for calm ahead of 4 00:00:17,040 --> 00:00:17,680 Speaker 2: her weekend. 5 00:00:19,079 --> 00:00:20,840 Speaker 1: Truth to be told, I was hoping for a very 6 00:00:20,920 --> 00:00:24,279 Speaker 1: quiet Friday because it was a public holiday here in 7 00:00:24,280 --> 00:00:29,960 Speaker 1: Singapore Thursday. Baby boy, It definitely didn't end up that way. 8 00:00:30,000 --> 00:00:34,120 Speaker 2: For short, Ruth covers the foreign exchange market from Singapore, 9 00:00:34,560 --> 00:00:39,320 Speaker 2: and on that particular Friday, an Asian currency that rarely 10 00:00:39,520 --> 00:00:42,400 Speaker 2: makes headlines started to search. 11 00:00:43,000 --> 00:00:46,720 Speaker 1: The Taiwan dollar. At around eleven thirty local time in Taipei. 12 00:00:46,920 --> 00:00:50,239 Speaker 1: It jumped by about two percent, but it didn't just 13 00:00:50,320 --> 00:00:53,200 Speaker 1: stop there. By the time markets had closed, the Taiwan 14 00:00:53,280 --> 00:00:57,120 Speaker 1: dollar was up about three percent higher against the US currency. 15 00:00:57,520 --> 00:01:02,320 Speaker 1: To put things into perspective, it was the single largest 16 00:01:02,960 --> 00:01:07,400 Speaker 1: one day advance since nineteen eighty eight. This is a 17 00:01:07,440 --> 00:01:12,080 Speaker 1: normally incredibly sedate currency. Something had clearly blown up. 18 00:01:14,920 --> 00:01:18,720 Speaker 2: The blow up at market watches globally on high alert, 19 00:01:19,400 --> 00:01:23,760 Speaker 2: and on Monday morning the surge continued. You're looking at 20 00:01:24,200 --> 00:01:28,760 Speaker 2: the Taiwan dollar up against virtually everything, and up substantially 21 00:01:29,280 --> 00:01:31,520 Speaker 2: against everything. Everything is done against a Taiwan don. I 22 00:01:31,560 --> 00:01:32,000 Speaker 2: think it's one. 23 00:01:32,280 --> 00:01:35,600 Speaker 1: The Taiwan dollars move was so large that it was affecting, 24 00:01:36,240 --> 00:01:40,080 Speaker 1: you know, peers in Asia. For instance, the Malaysian rinked 25 00:01:40,720 --> 00:01:44,400 Speaker 1: rose more than one percent on Friday. On Monday again boom, 26 00:01:44,480 --> 00:01:47,280 Speaker 1: we saw another one percent move, the South Korean one 27 00:01:47,880 --> 00:01:51,040 Speaker 1: jumped more than two percent at one stage, and then 28 00:01:51,040 --> 00:01:53,520 Speaker 1: we saw Hong Kong authorities ramp up sales at a 29 00:01:53,520 --> 00:01:57,680 Speaker 1: local dollar because the green bag was just weakening. So 30 00:01:57,720 --> 00:02:01,040 Speaker 1: it was a spiral effect and in a whirlpool, just 31 00:02:01,120 --> 00:02:02,240 Speaker 1: everything being sucked in. 32 00:02:03,240 --> 00:02:08,880 Speaker 2: Eventually, the Taiwan dollars stabilized, but the spike underscored a 33 00:02:09,040 --> 00:02:14,280 Speaker 2: much larger issue d dollarization, a movement away from US 34 00:02:14,400 --> 00:02:20,400 Speaker 2: assets as markets grapple, which shifts in US economic policy, 35 00:02:21,200 --> 00:02:24,960 Speaker 2: and Ruth stepping back. Why is it such a big 36 00:02:25,000 --> 00:02:29,400 Speaker 2: deal that Taiwan's dollar surged to these unprecedented levels. 37 00:02:30,320 --> 00:02:35,280 Speaker 1: It was hugely disruptive on a lot of levels of 38 00:02:35,320 --> 00:02:40,560 Speaker 1: the economy and also society. If you're a sophisticated investor, 39 00:02:40,680 --> 00:02:42,560 Speaker 1: then you're caught out on the wrong side of the trade. 40 00:02:42,600 --> 00:02:45,280 Speaker 1: You would have seen huge losses because this is a 41 00:02:45,320 --> 00:02:49,960 Speaker 1: normally stable currency. On an economic level, a surge of 42 00:02:50,000 --> 00:02:55,560 Speaker 1: this magnitude can really impact exporters, traders, insurers, And this 43 00:02:55,600 --> 00:02:57,880 Speaker 1: is coming at a time when the US was imposing 44 00:02:58,040 --> 00:02:59,880 Speaker 1: terrists right on most of the world and people are 45 00:03:00,200 --> 00:03:03,600 Speaker 1: to digest that. So there would have been also people 46 00:03:03,960 --> 00:03:06,560 Speaker 1: across markets that will be thinking about the other side 47 00:03:06,600 --> 00:03:09,119 Speaker 1: of the trade, which is a dollar. The green bag 48 00:03:09,200 --> 00:03:11,560 Speaker 1: is on eighty eight percent of all trades in the world, 49 00:03:12,240 --> 00:03:17,800 Speaker 1: so dominant that every single trade yield, every single currency exchange, 50 00:03:18,320 --> 00:03:22,080 Speaker 1: eighty eight percent of that every minute involves the dollar, 51 00:03:22,200 --> 00:03:25,760 Speaker 1: and people started thinking, are we wrong? Did we get 52 00:03:25,760 --> 00:03:28,000 Speaker 1: the dollar wrong here? And if so, maybe I should 53 00:03:28,040 --> 00:03:30,239 Speaker 1: just really sell it and sell it against. 54 00:03:29,960 --> 00:03:36,680 Speaker 2: What Welcome to the Big Take Asia from Bloomberg News. 55 00:03:37,000 --> 00:03:41,720 Speaker 2: I'm Rebecca Cheung Wilkins. Every week we take you inside 56 00:03:41,720 --> 00:03:44,760 Speaker 2: some of the world's biggest and most powerful economies and 57 00:03:44,800 --> 00:03:50,000 Speaker 2: the markets, tycoons, and businesses that drive this ever shifting region. Today, 58 00:03:50,040 --> 00:03:55,520 Speaker 2: on the show, Asia's Dollar Unwind, are Asian nations rethinking 59 00:03:55,520 --> 00:03:59,560 Speaker 2: their traditional approach of hoarding US dollars and what does 60 00:03:59,600 --> 00:04:03,080 Speaker 2: this mean for the global economy As confidence in the 61 00:04:03,160 --> 00:04:10,839 Speaker 2: dollar faces increasing scrutiny. For decades, the US dollar has 62 00:04:10,880 --> 00:04:15,440 Speaker 2: been the world's dominant currency. It's deeply embedded in government, 63 00:04:15,600 --> 00:04:20,000 Speaker 2: central banks, life insurers, and even your investment and retirement funds. 64 00:04:20,640 --> 00:04:23,840 Speaker 2: That's unlikely to change for the time being. But what 65 00:04:23,880 --> 00:04:26,960 Speaker 2: we saw happen with Taiwan's currency earlier this month is 66 00:04:27,040 --> 00:04:31,600 Speaker 2: extremely significant. It shows the degree to which investors are 67 00:04:31,640 --> 00:04:34,640 Speaker 2: looking for viable alternatives to the dollar. 68 00:04:35,400 --> 00:04:40,880 Speaker 1: Unprompted, a hedge fund manager told me, this is a 69 00:04:41,000 --> 00:04:43,440 Speaker 1: river's asiing flanantier crisis worth seeing right now. 70 00:04:44,000 --> 00:04:48,080 Speaker 2: Bloomberg's Ruth Carson says the spiral spark fears that Taiwan's 71 00:04:48,160 --> 00:04:50,560 Speaker 2: dollar search wasn't a one off event. 72 00:04:51,360 --> 00:04:55,600 Speaker 1: What I found really profound was that soul searching people going, 73 00:04:56,240 --> 00:04:59,760 Speaker 1: what if indeed this is the start of a domino 74 00:05:00,040 --> 00:05:04,720 Speaker 1: effect and we see money instead of being sucked out 75 00:05:04,760 --> 00:05:08,040 Speaker 1: of Asia, we see the opposite capital flows coming in 76 00:05:08,200 --> 00:05:11,800 Speaker 1: because momentum right, And indeed we did see that in 77 00:05:11,839 --> 00:05:15,839 Speaker 1: a way, Literally a week and a bit after the 78 00:05:15,880 --> 00:05:19,719 Speaker 1: Taiwan dollar explosion, the South Korean one actually jumped two percent, 79 00:05:19,760 --> 00:05:24,240 Speaker 1: another super sedate currency typically and the whole narrative just 80 00:05:24,279 --> 00:05:27,560 Speaker 1: gained a lot more traction that Hey, we are at 81 00:05:27,560 --> 00:05:30,480 Speaker 1: that point where This is nineteen ninety seven in reverse 82 00:05:30,560 --> 00:05:31,599 Speaker 1: twenty twenty five style. 83 00:05:32,240 --> 00:05:35,839 Speaker 2: In nineteen ninety seven, the Asian financial crisis began with 84 00:05:35,880 --> 00:05:40,120 Speaker 2: the devaluation of Thailand's currency and quickly spread through the region. 85 00:05:42,120 --> 00:05:46,240 Speaker 1: There was an over reliance on short term borrowings at 86 00:05:46,279 --> 00:05:50,640 Speaker 1: the time by countries like Thailand and South Korea and 87 00:05:50,680 --> 00:05:53,680 Speaker 1: all that, but the short term borrowings were not backed 88 00:05:53,680 --> 00:05:57,560 Speaker 1: by dollar assets, and that in turn really triggered a 89 00:05:57,600 --> 00:06:02,200 Speaker 1: debt crisis. There were very heart lessons learned of we 90 00:06:02,360 --> 00:06:05,680 Speaker 1: need to ensure that we have a treasure chest of 91 00:06:05,839 --> 00:06:13,120 Speaker 1: really strong, high quality desired assets like treasuries like the dollar, 92 00:06:13,520 --> 00:06:16,000 Speaker 1: and make sure we don't get to the nineteen ninety 93 00:06:16,000 --> 00:06:19,479 Speaker 1: seven repeat again. So that really led Asian nations to 94 00:06:19,480 --> 00:06:22,240 Speaker 1: double down on earning dollars from exports to the US, 95 00:06:22,640 --> 00:06:25,960 Speaker 1: building up surpluses that goes back to the treasure chest idea. 96 00:06:26,920 --> 00:06:30,760 Speaker 2: Since nineteen ninety seven, the eleven biggest economies in Asia 97 00:06:30,800 --> 00:06:35,960 Speaker 2: have collectively bought four point seven trillion dollars of US 98 00:06:36,040 --> 00:06:41,960 Speaker 2: equities and bonds, which they reinvested right back into America. 99 00:06:42,040 --> 00:06:45,520 Speaker 1: In the early two thousands, almost every dollar earned, for instance, 100 00:06:45,560 --> 00:06:49,840 Speaker 1: by the large Asian exporters to America was reinvested back 101 00:06:49,880 --> 00:06:54,000 Speaker 1: into its equities and bond markets, and Asian currencies have 102 00:06:54,200 --> 00:06:58,040 Speaker 1: been as a result almost unvalued for decades. 103 00:06:58,800 --> 00:07:02,240 Speaker 2: That tram peaked into thousand and four and started tapering 104 00:07:02,279 --> 00:07:06,440 Speaker 2: off as China's membership in the WTO reshaped investments in 105 00:07:06,480 --> 00:07:09,720 Speaker 2: the region. The two thousand and eight financial crisis and 106 00:07:09,840 --> 00:07:14,120 Speaker 2: last years carried trade crisis in Japan also spooked investors 107 00:07:14,120 --> 00:07:27,160 Speaker 2: into rebalancing their portfolios. Then Trump started his second term. 108 00:07:25,400 --> 00:07:32,240 Speaker 1: So almost unanimously talking to people across markets. The message 109 00:07:32,280 --> 00:07:36,040 Speaker 1: is that Donald Trump's trade war two point zero is 110 00:07:36,160 --> 00:07:40,600 Speaker 1: only accelerating the process of de dollarization, which in a 111 00:07:40,640 --> 00:07:43,480 Speaker 1: way is jargon for people turning away from the dollar 112 00:07:43,840 --> 00:07:49,600 Speaker 1: and finding alternatives. That undisputedly is the theme across the 113 00:07:49,640 --> 00:07:52,960 Speaker 1: seven point five trillion dollars a day currency market. It 114 00:07:53,120 --> 00:07:58,320 Speaker 1: is definitely the theme driving this insatiable bid for gold, 115 00:07:58,800 --> 00:08:04,240 Speaker 1: for instance, and also for just healthy alternatives. I mean, 116 00:08:04,280 --> 00:08:08,239 Speaker 1: even arguments like bitcoin, you know, are coming into the equation. 117 00:08:08,720 --> 00:08:12,400 Speaker 1: What can people do to find other stores of value 118 00:08:12,880 --> 00:08:15,320 Speaker 1: other than the US dollar. We're hearing people say that 119 00:08:15,520 --> 00:08:18,960 Speaker 1: markets are at an inflection point. We're witnessing the birth 120 00:08:19,000 --> 00:08:22,520 Speaker 1: pains of a new regime. Others are saying, this is 121 00:08:22,800 --> 00:08:26,000 Speaker 1: just the beginning of the great unwind of US dollar 122 00:08:26,400 --> 00:08:28,160 Speaker 1: hoarding and exceptionalism. 123 00:08:29,000 --> 00:08:32,240 Speaker 2: And how are we seeing investors in Asia reacting to 124 00:08:32,320 --> 00:08:37,280 Speaker 2: this idea of reverse capital flow? And if it is 125 00:08:37,360 --> 00:08:40,160 Speaker 2: coming back to Asia, where does the capital go? 126 00:08:41,280 --> 00:08:45,040 Speaker 1: Japan's largest life insure, for instance, nip On Life, they 127 00:08:45,120 --> 00:08:49,520 Speaker 1: are actively looking for alternatives to treasuries. This is a big, 128 00:08:49,760 --> 00:08:52,880 Speaker 1: you know, change in stance. The tide is turning after 129 00:08:52,920 --> 00:08:57,560 Speaker 1: a multi decade trend. That Titanic is turning. And don't 130 00:08:57,559 --> 00:09:01,480 Speaker 1: forget China, China, which is so critical. Data from treasury 131 00:09:01,480 --> 00:09:05,120 Speaker 1: has shown that they've shrunk. The treasury is holding in March. 132 00:09:05,920 --> 00:09:09,280 Speaker 1: The question then is you're right, where does the capital go. 133 00:09:09,960 --> 00:09:13,720 Speaker 1: It's going to gold, it's going to Europe, It's going 134 00:09:13,760 --> 00:09:17,800 Speaker 1: to places like the Singapore dollar, Taiwan dollar. We've seen 135 00:09:17,920 --> 00:09:20,920 Speaker 1: strength in Asian currency, so the drips and traps are 136 00:09:20,920 --> 00:09:23,640 Speaker 1: coming home, but it does take time and people are 137 00:09:23,679 --> 00:09:28,640 Speaker 1: still figuring out where that money will ultimately lead after 138 00:09:28,679 --> 00:09:29,199 Speaker 1: the break. 139 00:09:29,440 --> 00:09:33,880 Speaker 2: What a reframing of global financial markets means for Asia's economies. 140 00:09:45,720 --> 00:09:48,760 Speaker 2: The recent surge in Taiwan's dollar came as a shock 141 00:09:48,840 --> 00:09:54,040 Speaker 2: to investors, but the move globally towards Taiwan's currency doesn't 142 00:09:54,120 --> 00:09:57,839 Speaker 2: exist in a vacuum. Figures released in late April showed 143 00:09:57,880 --> 00:10:00,439 Speaker 2: strong economic growth in Taiwan in the the first few 144 00:10:00,480 --> 00:10:04,400 Speaker 2: months of twenty twenty five, and market watchers speculated that 145 00:10:04,559 --> 00:10:08,199 Speaker 2: foreign exchange rates could be part of the ongoing trade 146 00:10:08,240 --> 00:10:12,480 Speaker 2: negotiations between the US and major trade partners across Asia, 147 00:10:12,800 --> 00:10:18,440 Speaker 2: including Taiwan. What does a stronger Taiwan dollar mean for 148 00:10:18,559 --> 00:10:22,319 Speaker 2: people in Taiwan? Who does it benefit? Who does it hurt? 149 00:10:23,120 --> 00:10:24,680 Speaker 1: So I think a good way to think about it 150 00:10:24,720 --> 00:10:28,040 Speaker 1: would be to look at people in Taiwan and also 151 00:10:28,280 --> 00:10:31,439 Speaker 1: outside Taiwan. It's good for people who are overseas and 152 00:10:31,640 --> 00:10:35,200 Speaker 1: hoold Taiwan's assets like real estate shares, given that the 153 00:10:35,280 --> 00:10:37,840 Speaker 1: value of their local assets of just can you imagine 154 00:10:37,880 --> 00:10:39,640 Speaker 1: just search six percent and you didn't have to do 155 00:10:39,679 --> 00:10:42,160 Speaker 1: anything at all just because of the currency move. But 156 00:10:42,320 --> 00:10:44,520 Speaker 1: you know what, if you are an exporter, I mean 157 00:10:44,559 --> 00:10:47,320 Speaker 1: it's painful. All of a sudden you have got a 158 00:10:47,360 --> 00:10:48,280 Speaker 1: six percent hit. 159 00:10:50,720 --> 00:10:54,840 Speaker 2: Take Taiwan's TSMC, the world's largest chip maker, as an example. 160 00:10:55,440 --> 00:10:59,080 Speaker 2: It estimates that for every one percent appreciation in the 161 00:10:59,120 --> 00:11:04,600 Speaker 2: Taiwan dollar, its operating margin declines by zero point four percent. 162 00:11:05,280 --> 00:11:09,800 Speaker 2: Taiwan's life insurers, who are huge investors in US treasuries, 163 00:11:10,240 --> 00:11:12,040 Speaker 2: also took a significant hit. 164 00:11:12,760 --> 00:11:16,200 Speaker 1: If you're a local life insurer who have overseas assets 165 00:11:16,240 --> 00:11:20,920 Speaker 1: predominantly in the US, and you are unhitched or unprepared 166 00:11:21,040 --> 00:11:23,960 Speaker 1: for such set of moves in a currency, it severely 167 00:11:24,040 --> 00:11:27,600 Speaker 1: impacts the value of your investments in a very very 168 00:11:27,640 --> 00:11:31,319 Speaker 1: short space of time. Gomman Sachs they put pen to 169 00:11:31,360 --> 00:11:34,160 Speaker 1: paper and they did a calculation that a ten percent 170 00:11:34,240 --> 00:11:37,000 Speaker 1: gain in the dollar and this would will This could 171 00:11:37,080 --> 00:11:39,840 Speaker 1: potentially also apply to other players in the market. But 172 00:11:39,840 --> 00:11:41,840 Speaker 1: a ten percent gain and a Taiwan dollar could lead 173 00:11:41,880 --> 00:11:46,600 Speaker 1: to eighteen billion dollars in unrealized currency loss for the insurers, 174 00:11:46,600 --> 00:11:49,360 Speaker 1: and that would effectively wipe out their capital reserves. 175 00:11:51,040 --> 00:11:55,319 Speaker 2: Okay, so that's the impact on the day. But longer 176 00:11:55,440 --> 00:11:59,240 Speaker 2: term is a stronger Taiwan dollar is it good for Taiwan? 177 00:12:00,040 --> 00:12:04,000 Speaker 1: So a stronger Taiwan dollar is great for local consumers 178 00:12:04,040 --> 00:12:06,319 Speaker 1: in the sense that your imports become a lot cheaper. 179 00:12:06,400 --> 00:12:09,880 Speaker 1: All of a sudden, Your imported cheese has just gotten 180 00:12:09,880 --> 00:12:12,360 Speaker 1: a lot cheaper, they have more spending power as well, 181 00:12:12,480 --> 00:12:15,480 Speaker 1: So if you think about it, you can go overseas, 182 00:12:15,520 --> 00:12:17,360 Speaker 1: you can get a lot more bang for your buck. 183 00:12:17,960 --> 00:12:21,040 Speaker 1: But if you're an exporter and this is entrenched, all 184 00:12:21,040 --> 00:12:23,400 Speaker 1: of a sudden there is a regime shift and you 185 00:12:23,440 --> 00:12:27,959 Speaker 1: are facing a stronger Taiwan dollar as your base case, 186 00:12:28,360 --> 00:12:30,199 Speaker 1: you are going to be in a lot of pain. 187 00:12:31,000 --> 00:12:34,079 Speaker 1: Taiwan is a major exporter, and we all know strong 188 00:12:34,120 --> 00:12:37,160 Speaker 1: currencies not great for your p and l. 189 00:12:38,520 --> 00:12:41,839 Speaker 2: Outside Taiwan, some of the world's biggest money managers are 190 00:12:41,960 --> 00:12:45,680 Speaker 2: wary of how the unwinding of the US dollar could 191 00:12:45,760 --> 00:12:50,440 Speaker 2: affect other Asian countries, especially those that have large trade 192 00:12:50,480 --> 00:12:51,960 Speaker 2: surpluses with the US. 193 00:12:52,720 --> 00:12:56,160 Speaker 1: There are indicators out there suggesting that Asian currencies are 194 00:12:56,200 --> 00:13:00,840 Speaker 1: indeed severely undervalued, which puts this risk really at the 195 00:13:00,880 --> 00:13:06,599 Speaker 1: forefront of things. On average, for example, major Asian currencies, 196 00:13:06,840 --> 00:13:09,080 Speaker 1: including the yen and yue, which are seen as two 197 00:13:09,200 --> 00:13:11,160 Speaker 1: very anchor currencies and as part of the world, are 198 00:13:11,440 --> 00:13:14,920 Speaker 1: fifty seven percent weaker than exchange rates that take into 199 00:13:14,920 --> 00:13:17,600 Speaker 1: account differences in the cost of living. That's according to 200 00:13:17,600 --> 00:13:21,240 Speaker 1: our calculations, and that's close to an all time historic 201 00:13:21,360 --> 00:13:24,480 Speaker 1: low of fifty nine percent. It was set in twenty 202 00:13:24,480 --> 00:13:24,960 Speaker 1: twenty four. 203 00:13:25,520 --> 00:13:30,240 Speaker 2: And this is a controversial question with really only one answer. 204 00:13:31,840 --> 00:13:34,680 Speaker 2: What is the currency in Asia that could be a 205 00:13:34,760 --> 00:13:38,440 Speaker 2: dollar alternative and why is it so controversial as an alternative? 206 00:13:38,920 --> 00:13:43,120 Speaker 1: Yes, this is definitely something that is heavily debated across 207 00:13:43,840 --> 00:13:48,880 Speaker 1: research desks. I'm sure. So I'm going to quote Netics's 208 00:13:48,920 --> 00:13:53,040 Speaker 1: you know, there's a fantastic chief Asia Pacific economist over 209 00:13:53,040 --> 00:13:56,760 Speaker 1: there who said that for this to be structural, you 210 00:13:56,800 --> 00:14:00,760 Speaker 1: should know where to go and no gives the return 211 00:14:00,800 --> 00:14:03,680 Speaker 1: that the dollar has been giving nobody. So the euro 212 00:14:03,760 --> 00:14:05,680 Speaker 1: is the second most trader currency in the well, the 213 00:14:05,800 --> 00:14:09,520 Speaker 1: yen is the third, behind the dollar. But even though 214 00:14:09,559 --> 00:14:14,800 Speaker 1: it is combined, it's hard to find a true alternative 215 00:14:15,280 --> 00:14:19,280 Speaker 1: to the green back and the Treasury's market, which backs 216 00:14:19,320 --> 00:14:21,600 Speaker 1: a lot of this right, and the US equity markets. 217 00:14:22,240 --> 00:14:25,480 Speaker 1: But people are certainly thinking about it, and their thinking 218 00:14:25,600 --> 00:14:30,560 Speaker 1: in many ways is enough to trigger some really big 219 00:14:30,600 --> 00:14:34,560 Speaker 1: swings in markets. Now imagine if that gains traction. 220 00:14:34,960 --> 00:14:41,760 Speaker 2: But essentially, is this rewiring, this reframing of the global 221 00:14:41,800 --> 00:14:45,560 Speaker 2: financial system and move away from US dollar dominance and 222 00:14:45,640 --> 00:14:50,080 Speaker 2: move into emphasis on local currencies in Asia? Is this 223 00:14:50,280 --> 00:14:52,040 Speaker 2: good or bad for Asia. 224 00:14:54,160 --> 00:14:57,160 Speaker 1: You know, I don't even know whether I have an 225 00:14:57,280 --> 00:15:03,520 Speaker 1: encapsulating answer for that. What I think we can conclude 226 00:15:04,240 --> 00:15:08,680 Speaker 1: is that definitely there will be a recalibration of markets. 227 00:15:09,400 --> 00:15:12,360 Speaker 1: How it will land and ultimately end up, and who 228 00:15:12,400 --> 00:15:15,720 Speaker 1: the winners and losers are is still to be determined. 229 00:15:16,440 --> 00:15:19,840 Speaker 1: Because this is such a seismic shift, people are racing 230 00:15:19,960 --> 00:15:22,960 Speaker 1: to figure out. For instance, if we have a stronger 231 00:15:23,000 --> 00:15:26,280 Speaker 1: Singapore dollar, a stronger Hong Kong dollar, a stronger yen, 232 00:15:26,440 --> 00:15:30,840 Speaker 1: a stronger in a nation repair, how would that ultimately 233 00:15:30,920 --> 00:15:33,960 Speaker 1: change everything from the psyche of the consumer through to 234 00:15:34,040 --> 00:15:37,120 Speaker 1: the fabric of society and businesses as we know it today. 235 00:15:37,760 --> 00:15:39,640 Speaker 1: So all of a sudden, if you're going to have 236 00:15:40,120 --> 00:15:44,520 Speaker 1: people really focusing on buying Asia as a whole, it 237 00:15:44,560 --> 00:15:49,720 Speaker 1: could accelerate everything from tourism through to technology, through to education, 238 00:15:49,880 --> 00:15:54,440 Speaker 1: through to medicine and rewire not just the market side 239 00:15:54,480 --> 00:15:57,000 Speaker 1: of things, but whole economies. But I think people are 240 00:15:57,120 --> 00:15:58,960 Speaker 1: seriously at the point where they're trying to gain plan 241 00:15:59,040 --> 00:15:59,880 Speaker 1: what that could look. 242 00:16:08,840 --> 00:16:12,000 Speaker 2: This is the Big Take Asia from Bloomberg News. I'm 243 00:16:12,120 --> 00:16:15,360 Speaker 2: Rebecca Chung Wilkins. To get more from the Big Take 244 00:16:15,480 --> 00:16:18,760 Speaker 2: and unlimited access to all of bloomberg dot Com. Subscribe 245 00:16:18,760 --> 00:16:22,720 Speaker 2: today at bloomberg dot com slash podcast offer. If you 246 00:16:22,880 --> 00:16:25,880 Speaker 2: like the episode, make sure to subscribe and review The 247 00:16:25,920 --> 00:16:28,200 Speaker 2: Big Take Asia Wherever you listen. 248 00:16:28,000 --> 00:16:30,000 Speaker 1: To podcasts, it helps people. 249 00:16:29,880 --> 00:16:33,320 Speaker 2: Find the show. Thanks for listening, See you next time.