Saudi Arabia’s US Treasury holdings dropped to $126.9 billion in January, a $10.6 billion decrease from December, marking a 7.71 percent decline. The Kingdom remains 17th among top holders and the only GCC nation in the top 20. Japan is the largest holder of US Treasuries, with $1.07 trillion in assets, showcasing the competitive nature of international investments in US securities.

In January, Saudi Arabia’s investment in US Treasury securities decreased to $126.9 billion, reflecting a drop of $10.6 billion from December. This represents a month-on-month decline of 7.71 percent, suggesting potential market adjustments or rebalancing efforts as the Kingdom responds to evolving global economic conditions.

According to official data, Saudi Arabia maintained its 17th position among the largest holders of US Treasury securities in January and remains the sole Gulf Cooperation Council member within the top 20 holders. The US Department of the Treasury reported a net TIC outflow of $48.8 billion in January, comprising $74.8 billion in net foreign private outflows and $26.0 billion in net foreign official inflows.

The Kingdom’s portfolio consisted of $105.3 billion in long-term bonds, accounting for 83 percent, and $21.6 billion in short-term bonds, which represented 17 percent. Additionally, foreign residents increased their long-term US securities holdings by $200 million, with private investors acquiring $59.2 billion, while foreign official institutions recorded net sales of $59 billion.

January data indicated that US residents also increased their long-term foreign securities holdings, with total net purchases reaching $45.4 billion. Moreover, foreign residents raised their US Treasury bill holdings by $32.3 billion, leading to a cumulative increase of $53.9 billion in total dollar-denominated short-term US securities. In contrast, banks’ net dollar-denominated liabilities to foreign residents fell by $57.5 billion.

In terms of the overall hierarchy of US Treasury bond holders, Japan remains the leading investor with $1.07 trillion in its holdings, showing a 1.9 percent increase from December. China follows with $760.8 billion, while the UK ranks third with $740.2 billion. Other notable holders include Luxembourg and the Cayman Islands, with $409.9 billion and $404.5 billion, respectively. Belgium, Canada, France, Ireland, Switzerland, Taiwan, Hong Kong, Singapore, India, Brazil, and Norway round out the top holders of US Treasury securities.

Saudi Arabia’s recent adjustment in US Treasury holdings indicates its strategic response to fluctuating global economic conditions. Despite the decrease in January, the Kingdom retains a significant position among the largest holders. Furthermore, the overall landscape of US Treasury investments is dominated by Japan, China, and the UK, highlighting the importance of foreign investment in US securities.

Original Source: www.arabnews.com

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