China Offloads $74 Billion in U.S. Treasuries Over Seven Months

In this post:

  • China sold $74 billion in U.S. treasuries and agency debt in seven months.
  • The nation is distancing itself from the U.S. economy and accumulating gold.
  • China is focusing on its own economic growth and increasing trade with Europe.

China has been on a massive dumping spree, selling off $74 billion worth of U.S. treasuries and agency debt over the last seven months. This move is part of a strategy to distance itself from the U.S. economy. Instead, the country is accumulating gold.

Also Read: Russia, China Have Stopped Using US Dollar Permanently

According to the People’s Bank of China (PBOC), the country now holds 2,250 tonnes of gold in 2024, valued at nearly $159 billion. This change in reserve strategy aligns with the BRICS agenda of de-dollarization, shoving the U.S. dollar off its throne.

BRICS Has Been Trying To Eliminate the U.S. Dollar

The sale of U.S. treasuries and agency bonds aligns with BRICS’ long-term goals. BRICS has been the top buyer of gold since 2022, replacing U.S. treasuries in its reserves with the precious metal. In the first quarter of 2024 alone, China reportedly offloaded $53.3 billion worth of U.S. treasuries.

China Offloads $74 Billion in U.S. Treasuries Over Seven Months
President Vladimir Putin and President Xi Jinping. Source: Al-Jazeera

During the last few months of 2023, China sold another $21 billion in U.S. treasuries and agency bonds. In total, the Asian giant has dumped $74 billion in U.S. treasuries in just seven months. This development shows BRICS’ lack of confidence in holding U.S. treasuries, especially with the U.S. debt growing to $34.4 trillion.

The U.S. Economy Is Under Threat

As BRICS moves forward with its de-dollarization quest, the dumping of U.S. treasuries is a major concern for America. The U.S. economy relies on offshore investments. China, along with other BRICS countries, are doing all they can to sever these ties. This puts additional pressure on the American economy as developing countries avoid investing in U.S. treasuries.

Also Read: Digital Yuan Pilot to Include Cross-Border Transactions

The BRICS economic alliance has targeted increased European trade, which would further impact the U.S. dollar. China has recently shifted its focus to its own economic growth. This includes enhancing trade relations with European nations.

China Is Focused On Boosting Its Economy

President Xi Jinping met with state-owned business leaders and overseas investors, emphasizing that economic growth and reform are the country’s top priorities. He also engaged in talks with European leaders to boost economic cooperation.

Over the past few years, BRICS has seen huge growth in geopolitics. The alliance will focus on expanding with five countries at the 2024 Summit this August. Notably, there is no shortage of European nations willing to increase trade with BRICS countries.

France has consistently embraced diplomatic cooperation with China. Its relations with Serbia and Hungary also improved after a recent visit. Positive meetings with Budapest, Belgrade, and Brussels show that China’s plan might come together in the coming months.

Cryptopolitan reporting by Jai Hamid

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