China increases US treasury holdings
- China increases US treasury holdings
China increased its holdings of US treasury securities by $65.9 billion in October, consolidating its place as the No 1 holder of American debt, according to the Treasury’s latest report on international capital flows.
It was China’s largest monthly increase this year, pushing the country’s total holdings to $652.9 billion, compared with $587 billion at the end of September, when it replaced Japan to become the top holder of US debt.
The continual increases in US debt holdings in recent months have triggered fierce domestic debate, as the country has channeled almost a third of its $2 trillion of foreign exchange reserves into US treasury securities.
Minister: China’s foreign trade to hit $2.6 trillion in 2008
He also estimated that foreign investment had exceeded $90 billion, up about 20 percent.
China has been hammered by the global financial crisis, which has cut exports and foreign investment as the world economy went into a downturn.
- China’s forex reserves see first drop in 5 years
It is a good phenomenon for China’s mammoth foreign exchange reserves to diminish for the time being, some experts believed.
China’s forex reserves peaked at $1.9 trillion at the end of September, now they were below that figure, Tuesday’s Shanghai Securities Journal quoted Cai Qiusheng, head of the foreign debts section under the capital-account management department of the State Administration of Foreign Exchange, as saying.
This was the first decline in China’s forex reserves since the end of 2003.