Saudi Arabia Reports Significant Decrease in US Treasury Holdings
The Kingdom's holdings decline by $10.6 billion, reflecting market dynamics and investment strategy.
Saudi Arabia’s holdings of US Treasury securities were recorded at $126.9 billion in January, a decrease of $10.6 billion from the previous month, according to the latest data from the US Treasury.
This represents a month-on-month decline of 7.71 percent.
Saudi Arabia maintains its position as the 17th largest holder of US Treasury securities and remains the only member of the Gulf Cooperation Council in the top 20 holders.
The shift in holdings may indicate a response to market fluctuations or adjustments in the Kingdom's investment portfolio as it responds to evolving global economic conditions.
Official figures from the US Department of the Treasury indicated a broader trend in foreign investments, revealing a total net outflow from the US Treasury International Capital (TIC) accounts amounting to $48.8 billion in January.
This figure consists of net foreign private outflows of $74.8 billion, offset by net foreign official inflows of $26.0 billion.
The previous month, Saudi Arabia's holdings had shown a slight increase of 1.4 percent, rising from November’s figures.
The portfolio of US Treasury securities held by Saudi Arabia consists of $105.3 billion in long-term bonds, which account for 83 percent of the total, and $21.6 billion in short-term bonds, representing 17 percent.
In January, foreign residents of the United States increased their investments in long-term US securities by $200 million.
Private investors contributed $59.2 billion to this segment, while foreign official institutions recorded net sales amounting to $59 billion.
Additionally, US residents raised their holdings of long-term foreign securities, achieving net purchases of $45.4 billion.
Concurrently, foreign residents boosted their US Treasury bill holdings by $32.3 billion, culminating in a total of $53.9 billion in dollar-denominated short-term US securities.
On a broader scale, Japan remains the largest foreign investor in US Treasury securities, holding $1.07 trillion, representing a 1.9 percent increase from December.
China follows as the second-largest holder with $760.8 billion, while the United Kingdom ranks third with holdings of $740.2 billion.
Luxembourg and the Cayman Islands come in fourth and fifth place, with $409.9 billion and $404.5 billion, respectively.
The list of top holders also includes Belgium with $377.7 billion, Canada with $350.8 billion, and France with $335.4 billion.
Other notable investors include Ireland and Switzerland, holding $329.7 billion and $301.1 billion, respectively.
Taiwan's holdings were valued at $290.4 billion, while Hong Kong and Singapore held $255.9 billion and $247.6 billion, respectively.
India and Brazil follow with treasury holdings of $225.7 billion and $199.1 billion, while Norway maintains its investment at $173.1 billion.