Saudi Arabia’s US Treasury holdings decreased to $126.9 billion in January, with a $10.6 billion decline from December, reflecting a 7.71 percent drop. The Kingdom remains the 17th largest holder and the only GCC country in the top 20. Japan leads all investors with $1.07 trillion in Treasury securities.
In January, Saudi Arabia’s holdings of US Treasury securities reached $126.9 billion, marking a decrease of $10.6 billion from December. This represents a month-on-month decline of 7.71 percent, attributed to market fluctuations or portfolio rebalancing in response to global economic conditions.
Despite the reduction, Saudi Arabia maintained its position as the 17th largest holder of US Treasury securities. It remains the only member of the Gulf Cooperation Council within the top 20 holders. Notably, the Kingdom’s holdings increased by 1.4 percent in December compared to November.
A report from the US Department of the Treasury revealed a net TIC outflow of $48.8 billion in January, which included $74.8 billion in net foreign private outflows and $26.0 billion in net foreign official inflows. Saudi Arabia’s portfolio comprised $105.3 billion in long-term bonds, accounting for 83 percent of the total, and $21.6 billion in short-term bonds, or 17 percent.
Additionally, foreign residents increased their long-term US securities holdings by $200 million, with private investors purchasing $59.2 billion, while foreign official institutions had net sales of $59 billion. US residents also raised their long-term foreign securities holdings by $45.4 billion.
In the broader context, Japan remains the largest investor in US Treasury securities with $1.07 trillion in holdings. China and the UK follow in second and third places, with holdings of $760.8 billion and $740.2 billion respectively. Other notable holders include Luxembourg, Cayman Islands, and Belgium, each with significant portfolios in US Treasury securities.
In summary, Saudi Arabia’s January data reveals a notable decrease in US Treasury holdings, influenced by global economic dynamics. Despite this decline, the Kingdom remains a key player, retaining its rank amidst global investors led by Japan and China. The intricacies of Treasury holdings further demonstrate the evolving landscape of international finance, marked by fluctuations and strategic adjustments.
Original Source: www.arabnews.com
