It has been reported that China and Saudi Arabia, both members of the BRICS organization, have sold off significant amounts of US treasuries. Check out the latest reports about this.

BRICS reveals latest moves

According to recent data from the Treasury Department, China’s holdings of US treasuries went down from $938.8 billion in June 2022 to $835.4 billion in June 2023, resulting in a decrease of approximately $103.4 billion within a year.

Despite this, China still remains one of the largest creditors of the United States, with Japan holding the top position at $1.105 trillion.

Saudi Arabia, the newest member of BRICS, also reduced its US debt holdings from $119.2 billion to $108.1 billion, marking a decrease of $11.1 billion over the same period.

The decrease in US bond ownership by two BRICS nations is a recent indication of their opposition to the dominance of the US dollar.

According to Ziad Daoud, Bloomberg’s leading economist on emerging markets, Saudi Arabia’s decision to invest in riskier assets might influence the Federal Reserve’s stance on interest rates.

“Within the country, greater risks imply the likelihood of losses for the kingdom.

On a global scale, the transfer of Saudi wealth could lead to an increase in US interest rates.”

While China and Saudi Arabia have been selling US treasuries, other BRICS nations have increased their holdings. India accumulated $26.6 billion worth of US debt securities between June 2022 and June 2023.

During the 12-month period, the United Arab Emirates and Brazil added $25.1 billion and $1.3 billion, respectively, to their US treasury holdings.

BRICS in the news

A think tank based in Washington has expressed concerns that the expansion of BRICS, a group of countries with control over a large portion of global crude oil output, could be a warning to the United States.

In a recent blog post, Jonathan Panikoff of the Atlantic Council stated that the addition of new nations to the economic bloc is indicative of changing geopolitical circumstances.

Panikoff suggests that the US should maintain closer ties with its allies in light of the emergence of a multipolar world order.

Leave a Comment