The US dollar could face a severe crisis due to the BRICS and other Asian currencies, as revealed by Stephen Jen, CEO of Eurizon SLJ Capital, to Bloomberg, who indicated that a wave of US dollar sales worth $2.5 trillion could come from Asian countries. Jen revealed that Asian exporters and investors have accumulated a large amount of US dollars over the years, which could soon be discarded as the dollar is weakening against local currencies in 2025.
The Bloomberg currency index shows that the US dollar has fallen 8% since February, while local currencies outperform the reserve currency. This gives the BRICS alliance greater power to push the de-dollarization agenda, as $2.5 trillion hangs by a thread. 'We suspect that these dollar accumulations by Asian institutional exporters and investors could be extremely large. Possibly on the order of $2.5 trillion, approximately. And they pose serious risks of decline for the dollar against these Asian currencies,' wrote Jen and Joana Freire.
