China's US Treasury holdings hit 14-year low
China's holdings of United States government bonds in January fell to its lowest level since May 2009 due to the US Federal Reserve's tight monetary policy and the escalating tensions between the countries, local media reported on Thursday.
China held 859.4 billion dollar of US Treasury securities in January, down for the sixth month in a row, according to data released by the US Department of the Treasury on Wednesday.
January's figure was down from 867.1 billion dollar in the previous month and from 1 trillion dollar in January 2022.
The decrease in investments in treasuries is backing Beijing's efforts to diversify its portfolio, reduce dependence on the greenback while promoting the broader international use of the Chinese yuan and guarding against the risk of sanctions, according to the daily South China Morning Post.
Previous year, the Fed raised interest rates by a total of 425 points in seven rate hikes to fight record inflation, which jumped to a 40-year high in mid-2022.
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