Saudi Arabia cuts its holdings of US Treasury securities by 36.7% in two years

Okaz/Saudi Official Gazette

Riyadh — Saudi Arabia has reduced its holdings of US Treasury securities by about 36.71% in two years. The Kingdom has reduced the value of securities, amounting to SR253.88 billion ($67.7 billion) during the period from February 2020 to February 2022, according to an Okaz/Saudi Gazette watchdog.

There has been a decrease in the Kingdom’s holding of US Treasury securities, reaching $116.7 billion in February this year, and this figure marks a decrease of $2.7 billion from the previous month.

Saudi Arabia fell to 18th place among the biggest holders of US titles in February, after being ranked 17th at the end of 2021 and in January 2022.

Saudi Arabia’s investments in US Treasury securities last February amounted to $101.27 billion in long-term securities accounting for 87% of the total, and $15.46 billion in short-term securities representing 13%.

According to the Federal Reserve and the US Treasury Department, foreign countries held a total of $7.55 trillion in US Treasury securities as of September 2021. Of the total $7.55 trillion held by foreign countries, Japan and mainland China held the largest shares.

In February 2022, Japan was in the lead with a value of $1306.3 billion, followed by China with a value of $1054.8 billion. In two years, Japan has only increased its holdings of securities by 3%, up $38 billion.

As for China, which is the second in the world to hold securities, its holdings of securities fell by 3.43%, a drop of $37.5 billion.

Economic analyst Dr. Salem Bajaja pointed out that the buying and selling of US Treasury securities and other means of investment are generally subject to periodic evaluation. The same goes for their feasibility compared to other types of investments, in addition to the need for some countries to monetize their investments when needed.

During the coronavirus pandemic period, many countries have resorted to reducing their holdings of securities, Bajaja said while citing the examples of Brazil, Ireland, Luxembourg and Hong Kong.

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