tl;dr
Foreign exporters are showing less interest in being paid in US dollars due to recent currency volatility, according to US Bank. American importers report that their foreign partners prefer payments in euros, Chinese renminbi, Mexican pesos, and Canadian dollars to avoid exposure to the dollar's pri...
Foreign exporters are increasingly favoring payments in euros, yuan, pesos, and Canadian dollars over US dollars to avoid volatility risks. According to US Bank, this shift is driven by recent currency fluctuations that have made exporters less interested in receiving payments in US dollars.
American importers have reported that their foreign partners prefer being paid in currencies such as the euro, Chinese renminbi, Mexican peso, and Canadian dollar to minimize exposure to the dollar’s price movements. Paula Comings, head of FX sales at US Bank, highlighted that where dollars were once considered the prestigious currency for payments, exporters now simply want to receive their preferred local currency without fuss.
For instance, a lumber company based in the Midwest has switched to using euros for European hardwood imports, and a homeware retailer is now planning to pay Chinese exporters in yuan. Both companies had previously used US dollars for such transactions but have adjusted their payment strategies amid the changing currency landscape.
The US Dollar Index (DXY) currently stands at 98.92. Although it has risen by 5% in the last five days, it remains down nearly 9% year to date. This volatility makes alternative payment currencies more attractive to foreign exporters looking to avoid the uncertainties tied to the US dollar.
US Bank, holding $659.191 billion in total assets as of March 31, 2025, continues to track these shifts closely, reflecting broader trends in global trade and currency preferences.