In January, Saudi Arabia’s US Treasury holdings dropped to $126.9 billion, down $10.6 billion (7.71%) from December. The Kingdom ranks 17th globally among holders and is the sole Gulf Cooperation Council member in the top 20. Japan remains the largest holder with $1.07 trillion, while market fluctuations may have influenced Saudi Arabia’s portfolio adjustments.
In January, Saudi Arabia’s holdings of US Treasury securities totaled $126.9 billion, a decrease of $10.6 billion from December, which equates to a 7.71% decline month-on-month. Such fluctuations may reflect market changes or a strategic portfolio adjustment as the Kingdom responds to global economic conditions.
Currently, Saudi Arabia ranks 17th among the largest holders of US Treasury securities and remains the only member from the Gulf Cooperation Council in the top 20. In a related statement, the US Treasury Department mentioned that January experienced a net outflow of $48.8 billion across all foreign acquisitions of US securities.
The distribution of Saudi Arabia’s holdings included $105.3 billion in long-term bonds, which make up 83% of the total, and $21.6 billion in short-term bonds, representing 17%. Notably, foreign entities increased their long-term US securities by $200 million, with private investors contributing significantly to net purchases of $59.2 billion.
Total dollar-denominated short-term US securities also saw a positive shift, gaining $53.9 billion as foreign residents acquired $32.3 billion in US Treasury bills. In contrast, banks’ net dollar-denominated liabilities to foreign residents dropped by $57.5 billion.
As for the top holders of US Treasury securities, Japan leads with $1.07 trillion, followed by China at $760.8 billion and the UK with $740.2 billion. Other notable holders include Luxembourg, the Cayman Islands, and Belgium, with respective holdings of $409.9 billion, $404.5 billion, and $377.7 billion, while Canada holds $350.8 billion. France, Ireland, Switzerland, and Taiwan follow closely in the rankings.
Saudi Arabia’s recent reduction in US Treasury holdings indicates potential strategic shifts in response to market conditions, maintaining its significance as a key player in the global financial landscape. With its position unchanged among the top holders, the Kingdom continues to navigate complex economic variables while Japan and China lead in overall holdings. This underscores the dynamic nature of international bond markets and the influence of geopolitical factors on investment strategies.
Original Source: www.arabnews.com
