BRICS Nations Unload $18.9 Billion in US Treasuries Over a Single Month

BRICS members are actively divesting billions of dollars’ worth of US government-backed assets. According to the latest data from the Treasury Department. 

China is leading this trend by reducing its US treasuries holdings from $835.4 billion in June to $821.8 billion in July. Marking a significant $13.6 billion decrease in just one month. While China remains the second-largest foreign holder of US treasuries globally. It has offloaded a total of $117.4 billion in US government debt within the past year. Brazil has trimmed its US treasuries from $227.4 billion in June to $224.7 billion in July, a decrease of approximately $2.7 billion. India has also lowered its US treasury holdings by $2.3 billion during the same period. 

The United Arab Emirates, an oil-rich nation, witnessed a $300 million decline in its US treasury reserves, dropping from $65.2 billion in June to $64.9 billion in July. As reported by Nikkei Asia. China’s reduction in US treasuries is aimed at defending the yuan against a strong US dollar. This month, the Chinese yuan (CNY) fell to $0.136 against the US dollar. A level not seen since January 2008. When countries sell US treasuries, the funds collected from the sales can be used as capital by their central banks to acquire local currency on the open market. Thereby bolstering its value.

Clever Robot News Desk 25^th September 2023