Archive · 2 Sep 2025
Nations Shift Away from US Dollar Due to High Debt Costs
Some countries are choosing to use other currencies instead of the US dollar to pay back their loans.
This is because borrowing money in US dollars has become expensive.
High interest rates set by the US make it costly for countries to pay back the money they borrowed.
Countries like Kenya, Sri Lanka and Panama are now looking at using China's currency, the renminbi, and Switzerland's franc to save money.
The interest rates in these countries are much lower than in the US, making it cheaper to borrow money.
This switch is seen as a temporary fix by some experts, as countries try to manage their debts better.
Developing nations are shifting away from the US dollar due to high debt costs.
Countries are seeking alternatives like the Chinese renminbi and Swiss franc.
High debt servicing and borrowing costs are driving the move.
The US Federal Reserve's high interest rates are a key factor.
Kenya, Sri Lanka, and Panama are examples of countries making the shift.
- Who
- Developing nations, including Kenya, Sri Lanka, and Panama.
- What
- Are turning away from the US dollar for debt financing.
- When
- Recent years
- Where
- Developing countries
- Why
- High debt servicing costs and costs of borrowing.
- Primary Reason for Shift
- High debt servicing costs and borrowing costs
- Alternatives to US Dollar
- Chinese renminbi and Swiss franc
- Countries mentioned
- Kenya, Sri Lanka, Panama
- US Federal Reserve Interest Rates
- 4.25-4.5%
- Swiss National Bank Interest Rates
- 0% (June)
- China's Reverse Rate
- 1.4%
- Panama's Swiss Franc Loans
- ~$2.4 billion
- Panama Savings
- ~$200 million