File photo shows a worker counts Chinese currency Renminbi (RMB) at a bank in Linyi, east China’s Shandong Province. Photo: Xinhua
China’s holdings of US Treasury bonds fell to $775 billion in February, a drop of $22.7 billion from a month earlier, the second decrease this year, according to data released by the US Department of the Treasury on Wednesday.
In February, China remained the second largest holder of US government debt. However, China’s holding of US government debt has been below the $1 trillion mark since April 2022.
In January 2024, China trimmed holdings of US treasuries by $18.6 billion.
The downsizing marks a structural adjustment of China’s foreign exchange reserves, impacted by factors including the country’s balance of external payments and the profits on US Treasury bonds, Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China told the Global Times…
