ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Opinion

Asia's hidden exposure to Iran sanctions

Region's widespread dollarization makes it vulnerable to US action

| Southeast Asia
The dollar's dominant position in Asia's trade makes the region vulnerable to U.S. policy changes.

Asian economies are even more exposed than it seems to the economic impact of the U.S. withdrawal from the multilateral nuclear agreement with Iran.

As well as the obvious effect on the region's oil imports (China, India, Japan and South Korea buy around three quarters of Iran's exports), there is the concealed pain that will come from ubiquitous use of the U.S. dollar in Asian economies. Unlike Europe, it has no common currency of its own. Unlike Africa and much of Latin America, Asia's advanced and important economies cannot hide or hope to be ignored by Washington.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more