Asia's Euro Shift: US Loses Ground in Global Capital Raising

Asian economies are increasingly shifting their financing to other markets, a trend that underscores the potential erosion of American dominance in capital raising. According to Bloomberg-compiled data, Asia Pacific borrowers have increased euro-denominated issuance to a record 23% of the total across both currencies this year, up six percentage points from 2024. Euro note sales by companies and governments rose 75% in 2025 to $86.4 billion (€100.7 billion). The shift in financing is attributed to the growing use of the euro as a reserve currency, particularly among Asian countries. "The euro has become a more attractive option for Asian borrowers due to its liquidity and stability," said a spokesperson for the European Central Bank. "As the US dollar's dominance in global trade and finance continues to wane, the euro is emerging as a viable alternative." The trend is also driven by the increasing use of the euro as a currency for international trade and investment. "Asian countries are diversifying their currency holdings and using the euro as a hedge against the US dollar's volatility," said a senior economist at a leading financial institution. "This shift is a response to the uncertainty and unpredictability of US trade policies, particularly under the Trump administration." The implications of this trend are far-reaching, with potential consequences for the global economy and the US dollar's status as a reserve currency. "The erosion of American dominance in capital raising could have significant implications for the US economy and its ability to finance its growing national debt," said a leading economist at a prominent think tank. "It could also lead to a shift in the global balance of power, with the euro emerging as a more prominent player in international finance." The trend is also being driven by the increasing use of the euro as a currency for international trade and investment. "Asian countries are diversifying their currency holdings and using the euro as a hedge against the US dollar's volatility," said a senior economist at a leading financial institution. "This shift is a response to the uncertainty and unpredictability of US trade policies, particularly under the Trump administration." The current status of the trend is one of continued growth, with Asian economies showing no signs of slowing their shift towards the euro. "The euro's appeal as a reserve currency is likely to continue, driven by its liquidity and stability," said the European Central Bank spokesperson. "As the global economy continues to evolve, the euro is likely to play an increasingly important role in international finance."