Two Arab Nations Emulate China and Japan, Trim Down Investments in US Treasury Bonds

China continues to reduce its investment in US Treasury bonds and US bills for the seventh month in a row, Saudi Arabia and Kuwait have also cut these investments.

US Treasury data showed that China, the second-largest investor in US Treasuries and bills, invested about $859.4 billion in January 2023, up from $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.

As for the reason for Beijing withdrawing its money from US Treasury bonds and US bills, experts said that the reason is the depreciation of these investments against the backdrop of the continued rise in interest rates in the US, while others indicate that it is a matter of politics, as China seeks to reduce the risks of for the possibility of freezing their funds in the United States.

Experts expect Beijing’s investment in US government bonds to fall to $300-500 billion, and experts say that “more countries will withdraw their money from US Treasuries if the US does not recognize that the West has lost its hegemony.” over the global economy.

Among other factors, it was noted that the US public debt exceeded $31.4 trillion.

In terms of the Arab countries, Saudi Arabia led the Arab world in terms of investments in US Treasury bonds and US bills, which in January 2023 amounted to about $111 billion, after $119.4 billion in January 2022 in the world rankings. ) reduced its holdings in these bonds by $8.4 billion.

While the UAE, ranked second in the Arab ranking, increased these investments by $20 billion over the year, from $44.9 billion (January 2022) to $64.9 billion (January 2023).

As for Kuwait (28th in the world ranking), it has reduced investments in US Treasury bonds from $50.6 billion (January 2022) to $43.3 billion (January 2023), in contrast to Iraq , which increased these investments from $23.4 billion in January 2022 to $41.2 billion. , in January 2023.

Source: RT