Russia Adds to U.S. Treasury Holdings in November; China & Japan Cut Holdings
Russian U.S. Treasury holdings rise to $105.7 billion in November – near a 12 month high.
Russia’s gold reserves were valued at $76.1 billion at the end of November.
Russian U.S. Treasury holdings are up 22% (+$19.1 billion) since November 2016 when UST reserves were $86.6 Billion.
Chinese U.S. Treasury holdings fell $12.6 billion in November to $1176.6 billion, but are up $127.3 billion since November 2016 when UST reserves were $1049.3 billion.
Japan cut U.S. Treasury holdings by $9.9 billion in November and by $24.5 billion since November 2016 when UST reserves were $1108.6 billion.
Saudi Threats to Dump Treasuries over 9/11 issue don’t materialize as Saudi U.S. Treasury holdings continue to surge – up 49% over the past 12 months from $100.1 billion to $149 billion.
UK adds $29 billion in US Treasuries since Brexit vote in June 2016.
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Foreigners Loading Up on U.S. Treasuries Again
Foreign holdings of U.S. Treasuries grew $390 billion from January 2017 -November 2017.
U.S. Dollars constituted over $6.3 trillion in foreign reserves, while Chinese Yuan were at $107 billion at the end of the third quarter of 2017.
Russia Adds To Their U.S. Treasuries Position, China cuts.
China and Russia may be working on developing their own digital currencies, but in the meantime they are also rebuilding their stacks of U.S. Treasury securities they sold off during the past few years.
China was particularly troubled when the U.S. Federal Reserves embarked on quantitative easing in 2009 and took interest rates to zero. Russia sold off a good portion of its Treasuries after the US and other nations imposed sanctions on Russia in 2014. Both countries developed de-dollarization initiatives in response to U.S. monetary and foreign policies that included selling U.S. Treasuries and adding gold to their foreign reserves.
Russian Holdings of U.S. Treasuries
Chinese Holdings of U.S. Treasury Securities
Chinese are the number one foreign holder of U.S. Treasuries
Saudi Arabian Holdings of U.S. Treasury Securities
In April 2016, Saudi Arabia threated to dump its US Treasury holdings if the US Congress passed the 9/11 bill. Congress passed the bill in September of 2016, President Obama vetoed the bill and on September 28, 2016, congress overwhelmingly voted to override the President’s veto.
Despite threats to dump U.S. Treasuries, Saudi Arabia has increases UST holdings by 50%.
U.K. Holdings of U.S. Treasury Securities
Foreign Holdings of U.S. Treasury Securities Source: http://ticdata.treasury.gov
The Fed protects the dollar first and foremost, not the stock market or even the too big to fail shareholder interests. Without the dollar neither of the latter two can function. Everything runs on the dollar.
IS THE U.S. DOLLAR BECOMING THE NEW PETRO DOLLAR?
DOES THE FED NEED TO RAISE INTEREST RATES TO COMBAT DE-DOLLARIZATION INITIATIVES? (April 2015)
The Fed WILL Raise Rates This Year ( June 2015)
WHY THE FED RAISED INTEREST RATES (December 2015)
WHY THE FED RAISED RATES LAST YEAR AND WILL DO SO AGAIN THIS YEAR (May 2016)
HOW THE FED MANAGES THE DOLLAR AND AVOIDS COLLAPSE June 2016
TRUMP SHIFT TO CHINA: DOLLAR PROTECTION STRATEGY? April 2017
WHY SAUDI ARABIA MATTERS IN HELPING TO KEEP THE U.S. DOLLAR AS THE WORLD’S RESERVE CURRENCY (October 2013)
From US Treasury.gov
About TIC Data
The monthly data on holdings of long-term securities, as well as the monthly table on Major Foreign Holders of Treasury Securities, reflect foreign holdings of U.S. securities collected primarily on the basis of custodial data. These data help provide a window into foreign ownership of U.S. securities, but they cannot attribute holdings of U.S. securities with complete accuracy. For example, if a U.S. Treasury security purchased by a foreign resident is held in a custodial account in a third country, the true ownership of the security will not be reflected in the data. The custodial data will also not properly attribute U.S. Treasury securities managed by foreign private portfolio managers who invest on behalf of residents of other countries. In addition, foreign countries may hold dollars and other U.S. assets that are not captured in the TIC data. For these reasons, it is difficult to draw precise conclusions from TIC data about changes in the foreign holdings of U.S. financial assets by individual countries.
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