Saudi Arabia’s holdings of US Treasury securities decreased by $10.6 billion to $126.9 billion in January, representing a 7.71 percent decline. It remains the 17th largest holder globally. Japan leads the holders with $1.07 trillion, followed by China and the UK. Overall, foreign investment dynamics are shifting, showing varied trends in long-term and short-term securities.
In January, Saudi Arabia’s holdings of US Treasury securities decreased to $126.9 billion, marking a decline of $10.6 billion, equating to a 7.71 percent decrease from the previous month. This decline may indicate market fluctuations or adjustments in investment strategy as the Kingdom addresses global economic conditions. Despite this decrease, Saudi Arabia maintains its position as the 17th largest holder of US Treasury securities globally, remaining the sole Gulf Cooperation Council country in the top 20 rank.
The US Department of the Treasury reported a net TIC (Treasury International Capital) outflow of $48.8 billion in January, with net foreign private outflows of $74.8 billion, contrasted by net foreign official inflows of $26.0 billion. Notably, Saudi Arabia’s holdings had experienced a 1.4 percent increase in December compared to November, further illustrating the volatility in its investment approach.
Saudi Arabia’s portfolio consists predominantly of long-term bonds valued at $105.3 billion, accounting for 83 percent of its total holdings, while short-term bonds amounted to $21.6 billion, or 17 percent. Furthermore, it was reported that foreign residents increased their long-term US securities holdings by $200 million, with private investors acquiring $59.2 billion, whereas foreign official institutions had net sales worth $59 billion.
Globally, Japan continues to be the largest investor in US Treasury securities, holding $1.07 trillion, followed by China with $760.8 billion and the UK at $740.2 billion. Luxembourg and the Cayman Islands occupy the fourth and fifth positions with total holdings of $409.9 billion and $404.5 billion, respectively. Other significant holders include Belgium, Canada, France, and Taiwan, with varied holdings further demonstrating the international investment landscape.
In summary, Saudi Arabia’s recent adjustment in US Treasury holdings to $126.9 billion indicates both market dynamics and strategic portfolio considerations. While it remains a significant player as the 17th largest holder of these securities, global trends reveal broader shifts in foreign investments, with Japan, China, and the UK leading in US Treasury securities holdings. These movements highlight the ongoing complexities in the global financial landscape and the importance of strategic investment management.
Original Source: www.arabnews.com
