By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News, July 24, 2022
For the first time in 12 years, China’s investments in U.S. government debt securities fell below a trillion dollars, amounting to $ 980 billion in May 2022.
China, as the second largest holder of the US treasury, has reduced its holdings six months in a row from $1.08 trillion in November 2021 to $980.8 billion in May 2022. The previous time when it held less than $1 trillion of US treasury was in May 2010 – $843.7 billion, reported the Global Times.
Japan remained the largest holder of US debt, but has also recorded decreasing holdings recently from $1.232 trillion in March to $1.212 trillion in May.
We can explain this by the U.S. sanctions freezing the Russian monetary reserves in dollars. Because of such restrictive measures, confidence in the main reserve currency…
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