WEBVTT - The Dollar’s Dominance Is Unwinding in Asia

0:00:02.720 --> 0:00:07.600
<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

0:00:08.360 --> 0:00:12.440
<v Speaker 2>On a Friday afternoon earlier this month, Bloomberg's Ruth caston

0:00:12.600 --> 0:00:17.040
<v Speaker 2>was monitoring Asian markets and hoping for calm ahead of

0:00:17.040 --> 0:00:17.680
<v Speaker 2>her weekend.

0:00:19.079 --> 0:00:20.840
<v Speaker 1>Truth to be told, I was hoping for a very

0:00:20.920 --> 0:00:24.279
<v Speaker 1>quiet Friday because it was a public holiday here in

0:00:24.280 --> 0:00:29.960
<v Speaker 1>Singapore Thursday. Baby boy, It definitely didn't end up that way.

0:00:30.000 --> 0:00:34.120
<v Speaker 2>For short, Ruth covers the foreign exchange market from Singapore,

0:00:34.560 --> 0:00:39.320
<v Speaker 2>and on that particular Friday, an Asian currency that rarely

0:00:39.520 --> 0:00:42.400
<v Speaker 2>makes headlines started to search.

0:00:43.000 --> 0:00:46.720
<v Speaker 1>The Taiwan dollar. At around eleven thirty local time in Taipei.

0:00:46.920 --> 0:00:50.239
<v Speaker 1>It jumped by about two percent, but it didn't just

0:00:50.320 --> 0:00:53.200
<v Speaker 1>stop there. By the time markets had closed, the Taiwan

0:00:53.280 --> 0:00:57.120
<v Speaker 1>dollar was up about three percent higher against the US currency.

0:00:57.520 --> 0:01:02.320
<v Speaker 1>To put things into perspective, it was the single largest

0:01:02.960 --> 0:01:07.400
<v Speaker 1>one day advance since nineteen eighty eight. This is a

0:01:07.440 --> 0:01:12.080
<v Speaker 1>normally incredibly sedate currency. Something had clearly blown up.

0:01:14.920 --> 0:01:18.720
<v Speaker 2>The blow up at market watches globally on high alert,

0:01:19.400 --> 0:01:23.760
<v Speaker 2>and on Monday morning the surge continued. You're looking at

0:01:24.200 --> 0:01:28.760
<v Speaker 2>the Taiwan dollar up against virtually everything, and up substantially

0:01:29.280 --> 0:01:31.520
<v Speaker 2>against everything. Everything is done against a Taiwan don. I

0:01:31.560 --> 0:01:32.000
<v Speaker 2>think it's one.

0:01:32.280 --> 0:01:35.600
<v Speaker 1>The Taiwan dollars move was so large that it was affecting,

0:01:36.240 --> 0:01:40.080
<v Speaker 1>you know, peers in Asia. For instance, the Malaysian rinked

0:01:40.720 --> 0:01:44.400
<v Speaker 1>rose more than one percent on Friday. On Monday again boom,

0:01:44.480 --> 0:01:47.280
<v Speaker 1>we saw another one percent move, the South Korean one

0:01:47.880 --> 0:01:51.040
<v Speaker 1>jumped more than two percent at one stage, and then

0:01:51.040 --> 0:01:53.520
<v Speaker 1>we saw Hong Kong authorities ramp up sales at a

0:01:53.520 --> 0:01:57.680
<v Speaker 1>local dollar because the green bag was just weakening. So

0:01:57.720 --> 0:02:01.040
<v Speaker 1>it was a spiral effect and in a whirlpool, just

0:02:01.120 --> 0:02:02.240
<v Speaker 1>everything being sucked in.

0:02:03.240 --> 0:02:08.880
<v Speaker 2>Eventually, the Taiwan dollars stabilized, but the spike underscored a

0:02:09.040 --> 0:02:14.280
<v Speaker 2>much larger issue d dollarization, a movement away from US

0:02:14.400 --> 0:02:20.400
<v Speaker 2>assets as markets grapple, which shifts in US economic policy,

0:02:21.200 --> 0:02:24.960
<v Speaker 2>and Ruth stepping back. Why is it such a big

0:02:25.000 --> 0:02:29.400
<v Speaker 2>deal that Taiwan's dollar surged to these unprecedented levels.

0:02:30.320 --> 0:02:35.280
<v Speaker 1>It was hugely disruptive on a lot of levels of

0:02:35.320 --> 0:02:40.560
<v Speaker 1>the economy and also society. If you're a sophisticated investor,

0:02:40.680 --> 0:02:42.560
<v Speaker 1>then you're caught out on the wrong side of the trade.

0:02:42.600 --> 0:02:45.280
<v Speaker 1>You would have seen huge losses because this is a

0:02:45.320 --> 0:02:49.960
<v Speaker 1>normally stable currency. On an economic level, a surge of

0:02:50.000 --> 0:02:55.560
<v Speaker 1>this magnitude can really impact exporters, traders, insurers, And this

0:02:55.600 --> 0:02:57.880
<v Speaker 1>is coming at a time when the US was imposing

0:02:58.040 --> 0:02:59.880
<v Speaker 1>terrists right on most of the world and people are

0:03:00.200 --> 0:03:03.600
<v Speaker 1>to digest that. So there would have been also people

0:03:03.960 --> 0:03:06.560
<v Speaker 1>across markets that will be thinking about the other side

0:03:06.600 --> 0:03:09.119
<v Speaker 1>of the trade, which is a dollar. The green bag

0:03:09.200 --> 0:03:11.560
<v Speaker 1>is on eighty eight percent of all trades in the world,

0:03:12.240 --> 0:03:17.800
<v Speaker 1>so dominant that every single trade yield, every single currency exchange,

0:03:18.320 --> 0:03:22.080
<v Speaker 1>eighty eight percent of that every minute involves the dollar,

0:03:22.200 --> 0:03:25.760
<v Speaker 1>and people started thinking, are we wrong? Did we get

0:03:25.760 --> 0:03:28.000
<v Speaker 1>the dollar wrong here? And if so, maybe I should

0:03:28.040 --> 0:03:30.239
<v Speaker 1>just really sell it and sell it against.

0:03:29.960 --> 0:03:36.680
<v Speaker 2>What Welcome to the Big Take Asia from Bloomberg News.

0:03:37.000 --> 0:03:41.720
<v Speaker 2>I'm Rebecca Cheung Wilkins. Every week we take you inside

0:03:41.720 --> 0:03:44.760
<v Speaker 2>some of the world's biggest and most powerful economies and

0:03:44.800 --> 0:03:50.000
<v Speaker 2>the markets, tycoons, and businesses that drive this ever shifting region. Today,

0:03:50.040 --> 0:03:55.520
<v Speaker 2>on the show, Asia's Dollar Unwind, are Asian nations rethinking

0:03:55.520 --> 0:03:59.560
<v Speaker 2>their traditional approach of hoarding US dollars and what does

0:03:59.600 --> 0:04:03.080
<v Speaker 2>this mean for the global economy As confidence in the

0:04:03.160 --> 0:04:10.839
<v Speaker 2>dollar faces increasing scrutiny. For decades, the US dollar has

0:04:10.880 --> 0:04:15.440
<v Speaker 2>been the world's dominant currency. It's deeply embedded in government,

0:04:15.600 --> 0:04:20.000
<v Speaker 2>central banks, life insurers, and even your investment and retirement funds.

0:04:20.640 --> 0:04:23.840
<v Speaker 2>That's unlikely to change for the time being. But what

0:04:23.880 --> 0:04:26.960
<v Speaker 2>we saw happen with Taiwan's currency earlier this month is

0:04:27.040 --> 0:04:31.600
<v Speaker 2>extremely significant. It shows the degree to which investors are

0:04:31.640 --> 0:04:34.640
<v Speaker 2>looking for viable alternatives to the dollar.

0:04:35.400 --> 0:04:40.880
<v Speaker 1>Unprompted, a hedge fund manager told me, this is a

0:04:41.000 --> 0:04:43.440
<v Speaker 1>river's asiing flanantier crisis worth seeing right now.

0:04:44.000 --> 0:04:48.080
<v Speaker 2>Bloomberg's Ruth Carson says the spiral spark fears that Taiwan's

0:04:48.160 --> 0:04:50.560
<v Speaker 2>dollar search wasn't a one off event.

0:04:51.360 --> 0:04:55.600
<v Speaker 1>What I found really profound was that soul searching people going,

0:04:56.240 --> 0:04:59.760
<v Speaker 1>what if indeed this is the start of a domino

0:05:00.040 --> 0:05:04.720
<v Speaker 1>effect and we see money instead of being sucked out

0:05:04.760 --> 0:05:08.040
<v Speaker 1>of Asia, we see the opposite capital flows coming in

0:05:08.200 --> 0:05:11.800
<v Speaker 1>because momentum right, And indeed we did see that in

0:05:11.839 --> 0:05:15.839
<v Speaker 1>a way, Literally a week and a bit after the

0:05:15.880 --> 0:05:19.719
<v Speaker 1>Taiwan dollar explosion, the South Korean one actually jumped two percent,

0:05:19.760 --> 0:05:24.240
<v Speaker 1>another super sedate currency typically and the whole narrative just

0:05:24.279 --> 0:05:27.560
<v Speaker 1>gained a lot more traction that Hey, we are at

0:05:27.560 --> 0:05:30.480
<v Speaker 1>that point where This is nineteen ninety seven in reverse

0:05:30.560 --> 0:05:31.599
<v Speaker 1>twenty twenty five style.

0:05:32.240 --> 0:05:35.839
<v Speaker 2>In nineteen ninety seven, the Asian financial crisis began with

0:05:35.880 --> 0:05:40.120
<v Speaker 2>the devaluation of Thailand's currency and quickly spread through the region.

0:05:42.120 --> 0:05:46.240
<v Speaker 1>There was an over reliance on short term borrowings at

0:05:46.279 --> 0:05:50.640
<v Speaker 1>the time by countries like Thailand and South Korea and

0:05:50.680 --> 0:05:53.680
<v Speaker 1>all that, but the short term borrowings were not backed

0:05:53.680 --> 0:05:57.560
<v Speaker 1>by dollar assets, and that in turn really triggered a

0:05:57.600 --> 0:06:02.200
<v Speaker 1>debt crisis. There were very heart lessons learned of we

0:06:02.360 --> 0:06:05.680
<v Speaker 1>need to ensure that we have a treasure chest of

0:06:05.839 --> 0:06:13.120
<v Speaker 1>really strong, high quality desired assets like treasuries like the dollar,

0:06:13.520 --> 0:06:16.000
<v Speaker 1>and make sure we don't get to the nineteen ninety

0:06:16.000 --> 0:06:19.479
<v Speaker 1>seven repeat again. So that really led Asian nations to

0:06:19.480 --> 0:06:22.240
<v Speaker 1>double down on earning dollars from exports to the US,

0:06:22.640 --> 0:06:25.960
<v Speaker 1>building up surpluses that goes back to the treasure chest idea.

0:06:26.920 --> 0:06:30.760
<v Speaker 2>Since nineteen ninety seven, the eleven biggest economies in Asia

0:06:30.800 --> 0:06:35.960
<v Speaker 2>have collectively bought four point seven trillion dollars of US

0:06:36.040 --> 0:06:41.960
<v Speaker 2>equities and bonds, which they reinvested right back into America.

0:06:42.040 --> 0:06:45.520
<v Speaker 1>In the early two thousands, almost every dollar earned, for instance,

0:06:45.560 --> 0:06:49.840
<v Speaker 1>by the large Asian exporters to America was reinvested back

0:06:49.880 --> 0:06:54.000
<v Speaker 1>into its equities and bond markets, and Asian currencies have

0:06:54.200 --> 0:06:58.040
<v Speaker 1>been as a result almost unvalued for decades.

0:06:58.800 --> 0:07:02.240
<v Speaker 2>That tram peaked into thousand and four and started tapering

0:07:02.279 --> 0:07:06.440
<v Speaker 2>off as China's membership in the WTO reshaped investments in

0:07:06.480 --> 0:07:09.720
<v Speaker 2>the region. The two thousand and eight financial crisis and

0:07:09.840 --> 0:07:14.120
<v Speaker 2>last years carried trade crisis in Japan also spooked investors

0:07:14.120 --> 0:07:27.160
<v Speaker 2>into rebalancing their portfolios. Then Trump started his second term.

0:07:25.400 --> 0:07:32.240
<v Speaker 1>So almost unanimously talking to people across markets. The message

0:07:32.280 --> 0:07:36.040
<v Speaker 1>is that Donald Trump's trade war two point zero is

0:07:36.160 --> 0:07:40.600
<v Speaker 1>only accelerating the process of de dollarization, which in a

0:07:40.640 --> 0:07:43.480
<v Speaker 1>way is jargon for people turning away from the dollar

0:07:43.840 --> 0:07:49.600
<v Speaker 1>and finding alternatives. That undisputedly is the theme across the

0:07:49.640 --> 0:07:52.960
<v Speaker 1>seven point five trillion dollars a day currency market. It

0:07:53.120 --> 0:07:58.320
<v Speaker 1>is definitely the theme driving this insatiable bid for gold,

0:07:58.800 --> 0:08:04.240
<v Speaker 1>for instance, and also for just healthy alternatives. I mean,

0:08:04.280 --> 0:08:08.239
<v Speaker 1>even arguments like bitcoin, you know, are coming into the equation.

0:08:08.720 --> 0:08:12.400
<v Speaker 1>What can people do to find other stores of value

0:08:12.880 --> 0:08:15.320
<v Speaker 1>other than the US dollar. We're hearing people say that

0:08:15.520 --> 0:08:18.960
<v Speaker 1>markets are at an inflection point. We're witnessing the birth

0:08:19.000 --> 0:08:22.520
<v Speaker 1>pains of a new regime. Others are saying, this is

0:08:22.800 --> 0:08:26.000
<v Speaker 1>just the beginning of the great unwind of US dollar

0:08:26.400 --> 0:08:28.160
<v Speaker 1>hoarding and exceptionalism.

0:08:29.000 --> 0:08:32.240
<v Speaker 2>And how are we seeing investors in Asia reacting to

0:08:32.320 --> 0:08:37.280
<v Speaker 2>this idea of reverse capital flow? And if it is

0:08:37.360 --> 0:08:40.160
<v Speaker 2>coming back to Asia, where does the capital go?

0:08:41.280 --> 0:08:45.040
<v Speaker 1>Japan's largest life insure, for instance, nip On Life, they

0:08:45.120 --> 0:08:49.520
<v Speaker 1>are actively looking for alternatives to treasuries. This is a big,

0:08:49.760 --> 0:08:52.880
<v Speaker 1>you know, change in stance. The tide is turning after

0:08:52.920 --> 0:08:57.560
<v Speaker 1>a multi decade trend. That Titanic is turning. And don't

0:08:57.559 --> 0:09:01.480
<v Speaker 1>forget China, China, which is so critical. Data from treasury

0:09:01.480 --> 0:09:05.120
<v Speaker 1>has shown that they've shrunk. The treasury is holding in March.

0:09:05.920 --> 0:09:09.280
<v Speaker 1>The question then is you're right, where does the capital go.

0:09:09.960 --> 0:09:13.720
<v Speaker 1>It's going to gold, it's going to Europe, It's going

0:09:13.760 --> 0:09:17.800
<v Speaker 1>to places like the Singapore dollar, Taiwan dollar. We've seen

0:09:17.920 --> 0:09:20.920
<v Speaker 1>strength in Asian currency, so the drips and traps are

0:09:20.920 --> 0:09:23.640
<v Speaker 1>coming home, but it does take time and people are

0:09:23.679 --> 0:09:28.640
<v Speaker 1>still figuring out where that money will ultimately lead after

0:09:28.679 --> 0:09:29.199
<v Speaker 1>the break.

0:09:29.440 --> 0:09:33.880
<v Speaker 2>What a reframing of global financial markets means for Asia's economies.

0:09:45.720 --> 0:09:48.760
<v Speaker 2>The recent surge in Taiwan's dollar came as a shock

0:09:48.840 --> 0:09:54.040
<v Speaker 2>to investors, but the move globally towards Taiwan's currency doesn't

0:09:54.120 --> 0:09:57.839
<v Speaker 2>exist in a vacuum. Figures released in late April showed

0:09:57.880 --> 0:10:00.439
<v Speaker 2>strong economic growth in Taiwan in the the first few

0:10:00.480 --> 0:10:04.400
<v Speaker 2>months of twenty twenty five, and market watchers speculated that

0:10:04.559 --> 0:10:08.199
<v Speaker 2>foreign exchange rates could be part of the ongoing trade

0:10:08.240 --> 0:10:12.480
<v Speaker 2>negotiations between the US and major trade partners across Asia,

0:10:12.800 --> 0:10:18.440
<v Speaker 2>including Taiwan. What does a stronger Taiwan dollar mean for

0:10:18.559 --> 0:10:22.319
<v Speaker 2>people in Taiwan? Who does it benefit? Who does it hurt?

0:10:23.120 --> 0:10:24.680
<v Speaker 1>So I think a good way to think about it

0:10:24.720 --> 0:10:28.040
<v Speaker 1>would be to look at people in Taiwan and also

0:10:28.280 --> 0:10:31.439
<v Speaker 1>outside Taiwan. It's good for people who are overseas and

0:10:31.640 --> 0:10:35.200
<v Speaker 1>hoold Taiwan's assets like real estate shares, given that the

0:10:35.280 --> 0:10:37.840
<v Speaker 1>value of their local assets of just can you imagine

0:10:37.880 --> 0:10:39.640
<v Speaker 1>just search six percent and you didn't have to do

0:10:39.679 --> 0:10:42.160
<v Speaker 1>anything at all just because of the currency move. But

0:10:42.320 --> 0:10:44.520
<v Speaker 1>you know what, if you are an exporter, I mean

0:10:44.559 --> 0:10:47.320
<v Speaker 1>it's painful. All of a sudden you have got a

0:10:47.360 --> 0:10:48.280
<v Speaker 1>six percent hit.

0:10:50.720 --> 0:10:54.840
<v Speaker 2>Take Taiwan's TSMC, the world's largest chip maker, as an example.

0:10:55.440 --> 0:10:59.080
<v Speaker 2>It estimates that for every one percent appreciation in the

0:10:59.120 --> 0:11:04.600
<v Speaker 2>Taiwan dollar, its operating margin declines by zero point four percent.

0:11:05.280 --> 0:11:09.800
<v Speaker 2>Taiwan's life insurers, who are huge investors in US treasuries,

0:11:10.240 --> 0:11:12.040
<v Speaker 2>also took a significant hit.

0:11:12.760 --> 0:11:16.200
<v Speaker 1>If you're a local life insurer who have overseas assets

0:11:16.240 --> 0:11:20.920
<v Speaker 1>predominantly in the US, and you are unhitched or unprepared

0:11:21.040 --> 0:11:23.960
<v Speaker 1>for such set of moves in a currency, it severely

0:11:24.040 --> 0:11:27.600
<v Speaker 1>impacts the value of your investments in a very very

0:11:27.640 --> 0:11:31.319
<v Speaker 1>short space of time. Gomman Sachs they put pen to

0:11:31.360 --> 0:11:34.160
<v Speaker 1>paper and they did a calculation that a ten percent

0:11:34.240 --> 0:11:37.000
<v Speaker 1>gain in the dollar and this would will This could

0:11:37.080 --> 0:11:39.840
<v Speaker 1>potentially also apply to other players in the market. But

0:11:39.840 --> 0:11:41.840
<v Speaker 1>a ten percent gain and a Taiwan dollar could lead

0:11:41.880 --> 0:11:46.600
<v Speaker 1>to eighteen billion dollars in unrealized currency loss for the insurers,

0:11:46.600 --> 0:11:49.360
<v Speaker 1>and that would effectively wipe out their capital reserves.

0:11:51.040 --> 0:11:55.319
<v Speaker 2>Okay, so that's the impact on the day. But longer

0:11:55.440 --> 0:11:59.240
<v Speaker 2>term is a stronger Taiwan dollar is it good for Taiwan?

0:12:00.040 --> 0:12:04.000
<v Speaker 1>So a stronger Taiwan dollar is great for local consumers

0:12:04.040 --> 0:12:06.319
<v Speaker 1>in the sense that your imports become a lot cheaper.

0:12:06.400 --> 0:12:09.880
<v Speaker 1>All of a sudden, Your imported cheese has just gotten

0:12:09.880 --> 0:12:12.360
<v Speaker 1>a lot cheaper, they have more spending power as well,

0:12:12.480 --> 0:12:15.480
<v Speaker 1>So if you think about it, you can go overseas,

0:12:15.520 --> 0:12:17.360
<v Speaker 1>you can get a lot more bang for your buck.

0:12:17.960 --> 0:12:21.040
<v Speaker 1>But if you're an exporter and this is entrenched, all

0:12:21.040 --> 0:12:23.400
<v Speaker 1>of a sudden there is a regime shift and you

0:12:23.440 --> 0:12:27.959
<v Speaker 1>are facing a stronger Taiwan dollar as your base case,

0:12:28.360 --> 0:12:30.199
<v Speaker 1>you are going to be in a lot of pain.

0:12:31.000 --> 0:12:34.079
<v Speaker 1>Taiwan is a major exporter, and we all know strong

0:12:34.120 --> 0:12:37.160
<v Speaker 1>currencies not great for your p and l.

0:12:38.520 --> 0:12:41.839
<v Speaker 2>Outside Taiwan, some of the world's biggest money managers are

0:12:41.960 --> 0:12:45.680
<v Speaker 2>wary of how the unwinding of the US dollar could

0:12:45.760 --> 0:12:50.440
<v Speaker 2>affect other Asian countries, especially those that have large trade

0:12:50.480 --> 0:12:51.960
<v Speaker 2>surpluses with the US.

0:12:52.720 --> 0:12:56.160
<v Speaker 1>There are indicators out there suggesting that Asian currencies are

0:12:56.200 --> 0:13:00.840
<v Speaker 1>indeed severely undervalued, which puts this risk really at the

0:13:00.880 --> 0:13:06.599
<v Speaker 1>forefront of things. On average, for example, major Asian currencies,

0:13:06.840 --> 0:13:09.080
<v Speaker 1>including the yen and yue, which are seen as two

0:13:09.200 --> 0:13:11.160
<v Speaker 1>very anchor currencies and as part of the world, are

0:13:11.440 --> 0:13:14.920
<v Speaker 1>fifty seven percent weaker than exchange rates that take into

0:13:14.920 --> 0:13:17.600
<v Speaker 1>account differences in the cost of living. That's according to

0:13:17.600 --> 0:13:21.240
<v Speaker 1>our calculations, and that's close to an all time historic

0:13:21.360 --> 0:13:24.480
<v Speaker 1>low of fifty nine percent. It was set in twenty

0:13:24.480 --> 0:13:24.960
<v Speaker 1>twenty four.

0:13:25.520 --> 0:13:30.240
<v Speaker 2>And this is a controversial question with really only one answer.

0:13:31.840 --> 0:13:34.680
<v Speaker 2>What is the currency in Asia that could be a

0:13:34.760 --> 0:13:38.440
<v Speaker 2>dollar alternative and why is it so controversial as an alternative?

0:13:38.920 --> 0:13:43.120
<v Speaker 1>Yes, this is definitely something that is heavily debated across

0:13:43.840 --> 0:13:48.880
<v Speaker 1>research desks. I'm sure. So I'm going to quote Netics's

0:13:48.920 --> 0:13:53.040
<v Speaker 1>you know, there's a fantastic chief Asia Pacific economist over

0:13:53.040 --> 0:13:56.760
<v Speaker 1>there who said that for this to be structural, you

0:13:56.800 --> 0:14:00.760
<v Speaker 1>should know where to go and no gives the return

0:14:00.800 --> 0:14:03.680
<v Speaker 1>that the dollar has been giving nobody. So the euro

0:14:03.760 --> 0:14:05.680
<v Speaker 1>is the second most trader currency in the well, the

0:14:05.800 --> 0:14:09.520
<v Speaker 1>yen is the third, behind the dollar. But even though

0:14:09.559 --> 0:14:14.800
<v Speaker 1>it is combined, it's hard to find a true alternative

0:14:15.280 --> 0:14:19.280
<v Speaker 1>to the green back and the Treasury's market, which backs

0:14:19.320 --> 0:14:21.600
<v Speaker 1>a lot of this right, and the US equity markets.

0:14:22.240 --> 0:14:25.480
<v Speaker 1>But people are certainly thinking about it, and their thinking

0:14:25.600 --> 0:14:30.560
<v Speaker 1>in many ways is enough to trigger some really big

0:14:30.600 --> 0:14:34.560
<v Speaker 1>swings in markets. Now imagine if that gains traction.

0:14:34.960 --> 0:14:41.760
<v Speaker 2>But essentially, is this rewiring, this reframing of the global

0:14:41.800 --> 0:14:45.560
<v Speaker 2>financial system and move away from US dollar dominance and

0:14:45.640 --> 0:14:50.080
<v Speaker 2>move into emphasis on local currencies in Asia? Is this

0:14:50.280 --> 0:14:52.040
<v Speaker 2>good or bad for Asia.

0:14:54.160 --> 0:14:57.160
<v Speaker 1>You know, I don't even know whether I have an

0:14:57.280 --> 0:15:03.520
<v Speaker 1>encapsulating answer for that. What I think we can conclude

0:15:04.240 --> 0:15:08.680
<v Speaker 1>is that definitely there will be a recalibration of markets.

0:15:09.400 --> 0:15:12.360
<v Speaker 1>How it will land and ultimately end up, and who

0:15:12.400 --> 0:15:15.720
<v Speaker 1>the winners and losers are is still to be determined.

0:15:16.440 --> 0:15:19.840
<v Speaker 1>Because this is such a seismic shift, people are racing

0:15:19.960 --> 0:15:22.960
<v Speaker 1>to figure out. For instance, if we have a stronger

0:15:23.000 --> 0:15:26.280
<v Speaker 1>Singapore dollar, a stronger Hong Kong dollar, a stronger yen,

0:15:26.440 --> 0:15:30.840
<v Speaker 1>a stronger in a nation repair, how would that ultimately

0:15:30.920 --> 0:15:33.960
<v Speaker 1>change everything from the psyche of the consumer through to

0:15:34.040 --> 0:15:37.120
<v Speaker 1>the fabric of society and businesses as we know it today.

0:15:37.760 --> 0:15:39.640
<v Speaker 1>So all of a sudden, if you're going to have

0:15:40.120 --> 0:15:44.520
<v Speaker 1>people really focusing on buying Asia as a whole, it

0:15:44.560 --> 0:15:49.720
<v Speaker 1>could accelerate everything from tourism through to technology, through to education,

0:15:49.880 --> 0:15:54.440
<v Speaker 1>through to medicine and rewire not just the market side

0:15:54.480 --> 0:15:57.000
<v Speaker 1>of things, but whole economies. But I think people are

0:15:57.120 --> 0:15:58.960
<v Speaker 1>seriously at the point where they're trying to gain plan

0:15:59.040 --> 0:15:59.880
<v Speaker 1>what that could look.

0:16:08.840 --> 0:16:12.000
<v Speaker 2>This is the Big Take Asia from Bloomberg News. I'm

0:16:12.120 --> 0:16:15.360
<v Speaker 2>Rebecca Chung Wilkins. To get more from the Big Take

0:16:15.480 --> 0:16:18.760
<v Speaker 2>and unlimited access to all of bloomberg dot Com. Subscribe

0:16:18.760 --> 0:16:22.720
<v Speaker 2>today at bloomberg dot com slash podcast offer. If you

0:16:22.880 --> 0:16:25.880
<v Speaker 2>like the episode, make sure to subscribe and review The

0:16:25.920 --> 0:16:28.200
<v Speaker 2>Big Take Asia Wherever you listen.

0:16:28.000 --> 0:16:30.000
<v Speaker 1>To podcasts, it helps people.

0:16:29.880 --> 0:16:33.320
<v Speaker 2>Find the show. Thanks for listening, See you next time.