CHINA’S holding of US Treasury debt is the highest it’s been for 12 months, while China’s FX reserves have continued to increase month-on-month since January this year.
China’s holding of US Treasury debt stands at US$1.2 trillion as of August 2017, up 14% from a low US$1.05 trillion in January this year, marking eight months of consecutive increases, according to recently released data from the US Treasury department. The figure is also the highest it’s been since July 2016, when China’s holding amounted to US$1.218 trillion.
China overtook Japan as the number one holder of US debt in June this year. Japan’s current holdings amount to US$1.1 trillion. China’s holdings are about 19% of the US$6.27 trillion worth of US Treasury debt held by foreign countries.
This has also risen in line with China’s foreign exchange reserves, which have steadily risen since January 2017, when China’s foreign exchange reserves dipped below the US$3 trillion mark, but have since recovered, and now stand at US$3.1 trillion.
Photo of US Treasury Building: Rchuon24/Wikimedia