Saudi Arabia's US Treasury holdings see $10.6bn adjustment

21/03/2025 06:20 AST

Saudi Arabia's holdings of US Treasury securities stood at $126.9 billion in January, reflecting a $10.6 billion decrease from December, according to the latest US Treasury data.

This marks a 7.71 percent month-on-month decline.

The change could reflect market fluctuations or potential portfolio rebalancing as the Kingdom navigates global economic conditions.

Official data showed that Saudi Arabia retained its 17th position among the largest holders of US Treasury securities in January. It remains the only Gulf Cooperation Council country to rank among the top 20 holders.

In a press release, the US Department of the Treasury said: "The sum total in January of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a net TIC (Treasury International Capital) outflow of $48.8 billion. Of this, net foreign private outflows were $74.8 billion, and net foreign official inflows were $26.0 billion."

The Kingdom's holdings rose 1.4 percent in December compared to November, the report noted.

Saudi Arabia's portfolio was split between $105.3 billion in long-term bonds - accounting for 83 percent of the total - and $21.6 billion in short-term bonds, representing 17 percent.

The press release noted that foreign residents increased their holdings of long-term US securities by $200 million, with private investors buying $59.2 billion, while foreign official institutions recorded net sales of $59 billion.

US residents also increased their holdings of long-term foreign securities, with net purchases totaling $45.4 billion.

Meanwhile, foreign residents boosted their US Treasury bill holdings by $32.3 billion, contributing to a $53.9 billion rise in total dollar-denominated short-term US securities.

Conversely, banks' net dollar-denominated liabilities to foreign residents dropped by $57.5 billion.

Top holders of US Treasury bonds
Japan remained the largest investor in US Treasury securities in January, with holdings totaling $1.07 trillion, a 1.9 percent increase from December.

China ranked second with $760.8 billion in holdings, followed by the UK at $740.2 billion. Luxembourg and the Cayman Islands were ranked fourth and fifth on the list, with treasury holdings amounting to $409.9 billion and $404.5 billion.

Belgium secured the sixth spot with holdings worth $377.7 billion, closely followed by Canada with portfolios of $350.8 billion.

France came in eighth with treasury reserves worth $335.4 billion, followed by Ireland and Switzerland, with assets amounting to $329.7 billion and $301.1 billion, respectively. Taiwan was ranked 11th on the list, with treasury holdings worth $290.4 billion.

Hong Kong occupied the 12th spot with assets amounting to $255.9 billion, followed by Singapore and India, with holdings worth $247.6 billion and $225.7 billion, respectively.

Brazil held US treasury holdings worth $199.1 billion by the end of January. Norway followed with its holdings standing at $173.1 billion.

Arab News