Global suppliers are increasingly moving away from the U.S. dollar in international transactions, opting instead to be paid in local or alternative currencies — such as the euro, yuan, Mexican peso, or Canadian dollar. The main driver behind this shift is growing currency volatility and a desire to avoid dependence on the dollar’s instability, reports the Baltimore Chronicle with reference to Bloomberg.
According to bankers, this trend is being tracked by U.S. bank US Bancorp. Its representative, Paula Cummings, stated that more and more foreign suppliers are openly saying: “Pay us in our currency.”
As Bloomberg notes, exchange rate fluctuations are the key reason for this change. While the dollar temporarily strengthened amid the Middle East conflict, it has lost around 8% of its value against a basket of major world currencies throughout 2025.
Businesses are already adapting their payment mechanisms. For example, a company based in the U.S. Midwest now exchanges dollars for euros before paying for European timber, as the supplier offers a 2% discount for euro payments. Another American importer has arranged to pay Chinese suppliers in yuan. A third U.S. company, which purchases equipment from Italy, was able to secure better terms by agreeing to pay in euros.
Analysts believe this trend could intensify, especially if new regional trade blocs emerge in Asia or Latin America, where companies may prefer local or regional currencies for cross-border transactions.
Although the U.S. dollar remains the dominant currency in global trade — for instance, in the Americas between 1999 and 2019 it was used in nearly all export contracts — its leading role is now gradually being re-evaluated.
Earlier we wrote that Wall Street sees dollar losing ground as inflation slows.