i got do research for this before, i think it actually based on your luck 50% will work 50% will not work, personally i haven't try it out yet because my currecy also isn't dollar but i got saw some cases that actually work even their currecy isn't dollar. So ya it's 50/50
Steam will automatically convert your 5$ gift card to your currency. Dont worry
I would assume that new codes (cards issued after the new policy was implemented) will not convert, though there is a chance that there are old wallet codes still available in a lot of places which do not have the restrictions applied. We (and possibly gamehag staff themselves) have no way of knowing whether we will be receiving a new or old code so there is a chance it might work because it's an old code.
Nevertheless if you don't like this change I suggest making it known because Valve fanboys seem to dominate any discussion, defending policy changes on Steam which are objectively bad for ordinary users. I for one don't see how region locking gift cards is going to help prevent scams and sounds honestly a bit Xenophobic to me.
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Say, if I buy a $5 code but my Steam store's default currency isn't dollars, would I be able to activate it? I'm concerned because of the newest change in Steam's Wallet policy: https://support.steampowered.com/kb_article.php?ref=1122-RTSC-0478
"Each Steam User Account is associated with a specific currency, which you can see in the top right corner of your Steam Client. Going forward, you may encounter an error if you try to activate a Steam Wallet Code issued in a different currency than the one of your Steam User Account. "