China continues to reduce its investments in US Treasury bonds and bills for the seventh consecutive month. Saudi Arabia and Kuwait have also reduced these investments.
Data from the US Treasury Department showed that China’s investments, which ranks second in the list of major investors in US Treasury bonds and bills, amounted to about $859.4 billion in January 2023, compared to $1,299.9 billion in January 2022.
As for Japan, which tops the list, its investments in these bonds in January 2023 amounted to $1,104.4 billion, compared to investments of $1,299.9 billion in January 2022.
Regarding the reason for Beijing withdrawing its money from US Treasury bonds and bills, experts said that the reason is the depreciation of these investments against the backdrop of the continuous increase in interest rates in the United States, while others indicate that the matter is related to politics, as China seeks to reduce risks due to the possibility of freezing its funds. in the United States.
According to experts’ expectations, Beijing’s investments in US government bonds may drop to 300-500 billion dollars, and experts say that “more countries will withdraw their money from US Treasury bonds if the United States does not acknowledge that the West has lost its hegemony over the global economy.”
Among other factors, it was noted that the US public debt exceeded the level of 31.4 trillion dollars.
With regard to the Arab countries, Saudi Arabia topped the Arab world in the volume of investments in US Treasury bonds and bills, which amounted to about $111 billion in January 2023 after it was $119.4 billion in January 2022, meaning that the Kingdom (ranked 16th in the global ranking) has reduced its investments in these. Bonds of $8.4 billion.
While the UAE, which ranks second in the Arab ranking, increased these investments by $20 billion within a year, from $44.9 billion (January 2022) to $64.9 billion (January 2023).
As for Kuwait (ranked 28th in the global ranking), it reduced investments in US Treasury bonds from $50.6 billion (January 2022) to $43.3 billion (January 2023), unlike Iraq, which increased these investments from $23.4 billion in January 2022 to $41.2 billion. in January 2023.
This article was originally published by RT.
