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Omar El-Sharif
Saudi Arabia’s US Treasury Holdings Experience $10.6 Billion Decline in January
Saudi Arabia’s US Treasury securities dropped to $126.9 billion in January, a $10.6 billion decline from December. This represented a 7.71% decrease. The Kingdom maintained its 17th position among the largest holders, the only Gulf nation in the top 20. Japan, China, and the UK led in Treasury holdings globally.
In January, Saudi Arabia’s US Treasury securities holdings decreased to $126.9 billion, reflecting a $10.6 billion decline from December. This represents a 7.71 percent month-on-month reduction. Such fluctuations may indicate market adjustments or strategic portfolio rebalancing in response to global economic conditions.
Despite this decrease, Saudi Arabia maintained its position as the 17th largest holder of US Treasury securities, remaining the only Gulf Cooperation Council country among the top 20 investors. The US Department of the Treasury has reported a total net outflow of $48.8 billion in long-term and short-term foreign acquisitions, with net foreign private outflows at $74.8 billion and official inflows at $26.0 billion.
Notably, Saudi Arabia’s holdings of long-term bonds accounted for $105.3 billion (83 percent of the total), while short-term bonds represented $21.6 billion (17 percent). In December, Saudi Arabia’s treasury holdings experienced a 1.4 percent increase compared to November.
The report also indicates that foreign residents increased their long-term US securities holdings by $200 million. Private investors purchased $59.2 billion, whereas foreign official institutions reported net sales of $59 billion. Meanwhile, US residents made net purchases totaling $45.4 billion in long-term foreign securities.
On a broader scale, Japan continued to lead as the largest investor in US Treasury securities with $1.07 trillion, a rise of 1.9 percent from December. China followed with $760.8 billion, and the UK ranked third with $740.2 billion. Other notable holders include Luxembourg, the Cayman Islands, and Belgium, with holdings valued between $377.7 billion and $409.9 billion.
Brazil and Norway closed the listing with respective holdings of $199.1 billion and $173.1 billion in US treasuries by January’s end, demonstrating the diverse array of international investors participating in the US Treasury market.
Saudi Arabia’s recent adjustment in US Treasury holdings reflects ongoing market dynamics and strategic investment decisions. The Kingdom continues to hold a significant position as a Treasury investor while navigating global economic challenges. Notably, top holders of US Treasury securities remain Japan, China, and the UK, showcasing a competitive international landscape in treasury investments.
Original Source: www.arabnews.com
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