Asia Morning Briefing: Stablecoins Boost Dollar Demand Amid China’s Export Rise
Market Overview
Chinese exports, including electric vehicles, remain strong in Latin America. Despite efforts for de-dollarization, USDT is preferred over RMB due to its stability and liquidity.
- Bolivia settles about 10% of trade in yuan; Brazil renews a $26 billion swap line with China; Argentina uses renminbi to avoid default.
- Retail consumers and merchants prefer USDT for its stability and speed.
- Stablecoins like USDT offer advantages that CBDCs and yuan swap lines do not.
- This trend highlights a grassroots re-dollarization in the region, contrary to China's intentions.
- USDT dominates as the digital dollar in emerging markets.
Market Movements
- BTC: Trading above $114.5K with a slight downward trend. Institutional interest and macro sentiment influence the price.
- ETH: Trading at $4400, experiencing weak momentum. ETF inflow totaled $556M.
- Gold: Near record highs due to a weakening USD, expected Fed rate cuts, and inflation concerns.
- Nikkei 225: Rose by 1.28% as China held loan prime rates steady and Wall Street showed gains.