UBS Bombshell: Dollar Dominance Under Threat as $13.4T Selloff Looms

UBS July 14 report exposes four structural risks to USD system: net foreign debt surge from 9% to 88%, global reserve "overweight" at 58%, G10 nations holding $13.4T unhedged positions. Forecasts EUR/USD at 1.23 by end-2025, with every 10% dollar decline boosting EM relative performance by 9%. Dollar "overholding" reversal could trigger $670B selloff from just 5% position adjustment, reshaping global asset allocation landscape.