Tilans of dollars are threatened with the sale in Asia

According to Stephen Jin, the dollar is likely to have a ‘flood’ of $ 2.5 trillion, as Asian countries reduce their global reserve currencies. Jane and Joanna Ferroere of the Eurizon SLJ Capital, in a memorandum released on Wednesday, wrote that exporters and Asian investors may have accumulated a ‘large amount of’ dollars over the years, which led to an increase in the region’s trade balance with the United States. With the increase in the US trade war, some Asian investors can return a large part of the investments to their countries, or increase hedging levels from the fall of the dollar, and this is likely to lead to a wave of collective exit from the global reserve currency. They added: “We expect the exporters and investment institutions in Asia to maintain major reserves of the dollar, in the $ 2.5 billion, and that their size poses significant risks to the price of the dollar against these Asian currencies.” The trade war is pushing the dollar to face the severity of the green currency in the long run, as Donald Trump’s efforts to reform the world trading system have urged investors to reconsider the trading strategies based on the exceptional American. The significant increase in the Taiwanese dollar on Monday led to the growing speculation of the possibility of policymakers in Asia to allow the value of their currencies against the US dollar, as part of the efforts to reach a trade agreement with the United States. The “Bloomberg” index of the immediate dollar fell by about 8% in February from its peak, while all Asian currencies rose against the green currency over the past month. Jin, known for the status of the “dollar smile” theory, has already indicated that the return from a trillion dollar to the second largest economy in the world in light of the sale of Chinese businesses is their assets in dollars denominated when the US federal reserve low interest rates. Jane wrote that the frequency of flow, which amounts to a number of trillion dollars, can accelerate the spread of ‘open centers for the purchase of the dollar’ between the Asian countries that achieve large surpluses in foreign trade, which point to investment centers that did not surround the fluctuations of the dollar price. He pointed out that China, Taiwan, Malaysia and Vietnam are among these countries. In the latest report, he added that there is “a major lack of balance at the global level that puts the dollar in a poor position.”