Efforts are underway among ASEAN countries and China to promote the use of local currencies for trade and investment, aiming to strengthen regional financial stability.

President Donald Trump's 'reciprocal tariffs' are weakening the dollar's status as a global safe haven, leading to sell-offs of US Treasuries.

Asian nations hold approximately $9 trillion in US securities, representing 29% of all foreign-held US debt, with significant holdings from Japan and China.

Enhancing cooperation in digital currencies is a priority, with many Asian economies developing central bank digital currencies and improving cross-border payment platforms.

The US national debt has exceeded $36.2 trillion, with interest payments becoming the fastest-growing part of federal spending after the passage of the 'One Big Beautiful Bill Act'.

Asia is encouraged to bolster its financial safety net, improve the Chiang Mai Initiative Multilateralization, and consider establishing an 'Asian Monetary Fund' to promote regional stability.

To reduce exposure to US debt, Asian countries are decreasing their US Treasury holdings, with Japan's holdings dropping to $1.13 trillion and China's to $757.2 billion as of April 2025.

Asian economies are being urged to collaborate in reducing their overreliance on dollar-denominated assets due to rising risks associated with US debt and economic policies.

The US credit rating was downgraded from Aaa to Aa1 by Moody's in May 2025, citing wider fiscal deficits and increasing interest payments, marking the loss of triple-A status from all major agencies.

In May 2025, the yield on 30-year US Treasury bonds hit 5%, indicating declining global confidence in US bonds amid rising default risks.