According to financial experts at Eurizon SLJ Capital, Asian countries may have stockpiled approximately $2.5 trillion in US dollars that could soon be sold off.
This potential mass selling poses a significant risk to the dollar’s value against Asian currencies.
The trend is linked to changing trade relationships with the US and Donald Trump’s trade policies, which are causing investors to reconsider their US-focused investment strategies.
Several Asian countries with large trade surpluses, including China, Taiwan, Malaysia, and Vietnam, hold substantial unhedged dollar positions that make the US currency particularly vulnerable.