Saudi Arabia’s US Treasury holdings decreased to $126.9 billion in January, a decline of $10.6 billion or 7.71 percent from December. The country remains 17th among the largest holders globally. Japan and China continue to hold the top ranks in US Treasury investments, with Japan’s holdings increasing to $1.07 trillion.

In January, Saudi Arabia’s holdings of US Treasury securities reached $126.9 billion, representing a decrease of $10.6 billion from December. This decline signified a 7.71 percent reduction month-on-month, potentially indicative of market fluctuations or a strategic rebalancing of portfolios by the Kingdom amidst evolving global economic circumstances. Despite this drop, Saudi Arabia maintained its rank as the 17th largest holder of US Treasury securities, remaining the sole Gulf Cooperation Council country in the top 20 positions.

The latest data from the US Department of the Treasury revealed a net TIC (Treasury International Capital) outflow of $48.8 billion in January, which included $74.8 billion in net foreign private outflows and $26.0 billion in net foreign official inflows. Moreover, Saudi holdings had seen a slight recovery of 1.4 percent in December compared to November. The Kingdom’s portfolio comprised approximately $105.3 billion in long-term bonds (accounting for 83 percent) and $21.6 billion in short-term bonds (17 percent).

In January, foreign residents increased their long-term US securities holdings by $200 million, driven by private investors who purchased $59.2 billion worth. In contrast, foreign official institutions recorded net sales totaling $59 billion. US residents also expanded their long-term foreign securities holdings with net purchases amounting to $45.4 billion. Additionally, foreign residents raised their US Treasury bill holdings by $32.3 billion, which contributed to an overall increase of $53.9 billion in total dollar-denominated short-term US securities.

Japan held the title of the largest investor in US Treasury securities in January, with holdings of $1.07 trillion, representing a 1.9 percent increase. China followed with $760.8 billion in holdings, while the United Kingdom was third with $740.2 billion. Luxembourg and the Cayman Islands occupied the fourth and fifth positions with $409.9 billion and $404.5 billion, respectively. Belgium was sixth with $377.7 billion, closely trailed by Canada at $350.8 billion.

France ranked eighth, holding $335.4 billion, followed by Ireland and Switzerland with $329.7 billion and $301.1 billion, respectively. Taiwan claimed the 11th position with $290.4 billion in treasury holdings, while Hong Kong, Singapore, and India came next with assets of $255.9 billion, $247.6 billion, and $225.7 billion, respectively. Brazil’s US Treasury holdings stood at $199.1 billion, with Norway following at $173.1 billion by the end of January.

In summary, Saudi Arabia experienced a notable decrease in its US Treasury securities, reflecting market dynamics and potential portfolio adjustments. The Kingdom remains a significant player, retaining its rank among the largest holders. Furthermore, the broader landscape reveals various countries, especially Japan and China, continuing to lead with substantial investments in US Treasuries. This scenario emphasizes the ongoing complexities of international investment relations and economic conditions.

Original Source: www.arabnews.pk

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