Saudi Arabia’s US Treasury holdings decreased by $10.6 billion to $126.9 billion in January, marking a decline of 7.71 percent month-on-month. It remains the 17th largest holder among foreign countries. Japan and China are the top investors in US Treasury securities, with substantial increases in their respective holdings.
In January, Saudi Arabia’s US Treasury securities amounted to $126.9 billion, marking a notable decrease of $10.6 billion, or 7.71 percent, from the previous month. This decline may indicate market fluctuations or an adjustment in the Kingdom’s investment strategy amidst changing global economic conditions. Despite this reduction, Saudi Arabia remained the 17th largest holder of US Treasury securities and is the only member of the Gulf Cooperation Council (GCC) in the top 20.
Data from the US Department of the Treasury highlighted a net Treasury International Capital (TIC) outflow of $48.8 billion in January, stemming from various foreign acquisitions. Among these, private investor outflows amounted to $74.8 billion, while official foreign inflows totaled $26 billion. Saudi Arabia’s treasury holdings increased by 1.4 percent in December versus November, signifying some level of portfolio adjustment.
The Kingdom’s investments consisted of approximately $105.3 billion in long-term bonds, representing 83 percent of the portfolio, alongside $21.6 billion in short-term bonds, which made up 17 percent. Additionally, foreign residents enhanced their long-term US security holdings by $200 million, with private investors accounting for $59.2 billion, in contrast to net sales of $59 billion by foreign official institutions.
Japan continued to dominate as the largest holder of US Treasury securities in January, with a total of $1.07 trillion, a 1.9 percent rise from December. Following Japan, China held $760.8 billion and the United Kingdom $740.2 billion. Luxembourg and the Cayman Islands ranked fourth and fifth respectively, holding $409.9 billion and $404.5 billion in treasury bonds.
Belgium was sixth with $377.7 billion, accompanied by Canada at $350.8 billion. France secured the eighth position with reserves of $335.4 billion, trailed by Ireland and Switzerland with $329.7 billion and $301.1 billion, respectively. Taiwan, Hong Kong, Singapore, and India also made the list of significant holders of US Treasury securities, with each maintaining substantial investments ranging from $225.7 billion to $290.4 billion. Brazil and Norway rounded out the rankings with $199.1 billion and $173.1 billion respectively.
In summary, Saudi Arabia’s US Treasury holdings saw a significant decrease in January, reflecting potential market adjustments and maintaining its position as a substantial player within the global investment landscape. The overall trends in foreign investment in US securities indicate active trading and portfolio rebalancing, particularly within the realms of long-term holdings. Japan continues to lead as the largest holder, further demonstrating the competitive nature of international financial markets.
Original Source: www.arabnews.com
