Part 3/11:
According to economist Steven Jen and Joanna Frra, estimates suggest that the dollar holdings in Asia could now surpass $2.5 trillion. Much of this amount is held by export-driven economies and institutional investors. A concerning aspect is that many of these positions are "naked longs," meaning investors are heavily leveraged on the dollar's strength without adequate hedging. This creates an urgent incentive to reassess holdings should the dollar weaken, exposing investors to substantial risks.