Governments Turn to Nondollar Bonds

Governments and state entities are raising funds outside dollar bonds due to rising capital costs. Increased competition for capital driven by artificial intelligence is squeezing developing nations.

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FILE PHOTO: A bank employee count China’s renminbi (RMB) or yuan notes next to U.S. dollar notes at a Kasikornbank in Bangkok, Thailand, January 26, 2023. REUTERS/Athit Perawongmetha/File Photo

Governments and state entities are increasingly issuing non-dollar bonds to bypass soaring borrowing costs driven by intense competition for capital, according to Citi. Local currency markets in China, Australia, and Singapore are absorbing the shift.

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