Analysts say that $ 2,500,000,000,000 “Avalanche” of sale can reach the US dollar, and warns of commercial wars that threaten the call of Greenback: Report
The US dollar can suffer from major sale by Asian investors and exporters caused by trade tensions, according to a pair of total economic and currency strategists.
The Eurizon SLJ Capital Stephen Jin and Joana says in a new investment note that Asian investors have accumulated a huge pile of the US dollar that can be eliminated collectively if commercial wars intensified and the dollar weakens, weakens, Reports Bloomberg.
According to analysts, if the trade conflict by the United States is growing, a large number of Asian investors can return the capital to the homeland or seek to support their defenses against the decline in the US dollar.
They warn of this, it can leave the dollar that faces a “collapse” of $ 2.5 trillion of sale.
“We doubt that these elements in dollars by Asian exporters and institutional investors may be very large-perhaps in order of $ 2.5 trillion or so-and pose severe negative risks to the dollar against these Asian currencies.”
Bloomberg says the dollar scale has decreased about 8 % of the highest level in February. Meanwhile, Asian currencies were strengthened against Greenback last month.
President Trump signed an executive order in April to impose a 10 % tariff on all imported goods entering the United States, and the declared goal of increasing local manufacturing. The President also issued a declaration that slapped mutual definitions to dozens of countries.
The Trump administration says it is currently participating with more than ten countries around the world to make new trade deals.
Meanwhile, US Treasury Secretary Scott Besin and Commercial Representative Jameson Jarir will meet with their Chinese counterparts to discuss commercial and economic issues in Switzerland this week.
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