China
and Japan – the two main holders of the US Treasury securities –
have trimmed their ownership of notes and bonds in August, according
to the latest figures from the US Treasury Department, released on
Tuesday.
China’s
holdings of US sovereign debt dropped to $1.165 trillion in August,
from $1.171 trillion in July, marking the third consecutive month of
declines as the world’s second-largest economy bolsters its
national currency amid trade tensions with the US. China remains the
biggest foreign holder of US Treasuries, followed by long-time US
ally Japan.
Tokyo
cut its holdings of US securities to $1.029 trillion in August, the
lowest since October 2011. In July, Japan’s holdings were at $1.035
trillion. According to the latest figures from the country’s
Ministry of Finance, Japanese investors opted to buy British debt in
August, selling US and German bonds. Japan reportedly liquidated a
net $5.6 billion worth of debt.
Liquidating
US Treasuries, one of the world's most actively-traded financial
assets, has recently become a trend among major holders. Russia
dumped 84 percent of its holdings this year, with its remaining
holdings as of June totaling just $14.9 billion. With relations
between Moscow and Washington at their lowest point in decades, the
Central Bank of Russia explained the decision was based on financial,
economic and geopolitical risks.
Turkey
and India have followed suit. Like Russia, Turkey has dropped out of
the top-30 list of holders of American debt following a conflict with
Washington over the attempted military coup in the country two years
ago. While India remains among the top-30, the country has cut its US
Treasury holdings for the fifth consecutive month, from $157 billion
in March to $140 billion in August.
Earlier
this week, Goldman Sachs said that US policy of sanctions and tariffs
against major economies, including Russia, China and Iran, dragged
down the dollar’s share of global central-bank reserves. Meanwhile,
the data from the International Monetary Fund confirms that the US
dollar's share in the global central-bank reserves dropped to 62.3
percent from April to June, while holdings in the euro, yen and yuan
gained as a share of allocated reserves.
Source,
links:
Comments
Post a Comment