Written By: Joe Krzywicki, CTP, Executive Vice President, Chief Banking Officer

In recent years, the banking industry has been at the forefront of a major shift in international finance, as more international financial institutions move away from the traditional dominance of the U.S. dollar in favor of local and regional currencies. Banks are increasingly facilitating cross-border transactions in currencies such as the renminbi, euro, and dirham, reshaping correspondent banking relationships and payment infrastructure. As this trend accelerates, it signals a fundamental transformation in the way banking systems support international trade, reducing reliance on the dollar and fostering a more diversified and decentralized financial landscape.

At ACBB, we see shifts in U.S. dollar-denominated trade as an opportunity and call to action for community financial institutions serving small and mid-sized businesses. Small and Medium-sized Enterprise’s (SME’s) drive approximately one-third of both U.S. goods exports and imports by value and as global suppliers increasingly prefer to be paid in their local currencies, U.S. businesses are being challenged to adapt quickly or risk losing pricing power and vendor relationships.

For community financial institutions, this presents a timely opportunity: helping small businesses compete globally by enabling cost-effective, transparent, and secure cross-border payments in foreign currencies. Whether it’s settling in euros to earn a supplier discount or transacting in renminbi to streamline trade with Chinese partners, paying in local currencies isn’t just a trend, it’s becoming a necessity for staying competitive.

Foreign currency payments can:

• Reduce supplier costs through favorable pricing or discounts
• Minimize Foreign Exchange (FX) risk by avoiding volatile dollar conversions for vendors
• Strengthen supply chain relationships with preferred payment terms

ACBB is actively working to expand cross-border payment solutions in partnership with our community financial institutions. Through our correspondent relationships and global FX platforms, we deliver international payment capabilities, all while ensuring community financial institutions retain their customer relationships while increasing revenue opportunities.

Community financial institutions that empower their business customers to meet the new expectations of global commerce, including paying in local currencies,  will be the ones that grow deeper client loyalty and unlock new value streams.

At ACBB, we’re here to ensure those capabilities are within reach. Get in touch to see how ACBB can partner with you for long term success.