In just over half a year, China sold off US$100 billion worth of Treasuries, or nearly 10% of its total holdings.

In just over half a year, China sold off US$100 billion worth of Treasuries, or nearly 10% of its total holdings.

The Chinese government is redistributing wealth. The value of China’s U.S. Treasury holdings in July was 9 percent lower than it would have been at the end of 2021, and in August, the country imported more gold than ever before. As a result of the dollar’s decline in value, the United States, Europe, and Japan have frozen the Russian Central Bank’s overseas assets, and China has stepped up its vigilance against dollar dependence. However, rapidly introducing new methods of asset management is challenging. Some U.S. Treasury Bonds can be held indirectly in tax havens (Tax Haven).

The U.S. Treasury Department reports that as of the end of July, China held $970 billion worth of U.S. Treasuries. Even though it’s up a little from last month, it’s been going down for seven months in a row now, and that trend is expected to continue through at least June. Trade deficits between China and the United States have been trending downward since 2018, and projections show that they will drop by $100 billion, or nearly 10%, in the first half of 2022.

Judging by the data for the first half of the year, this is the largest drop in China’s holdings in the 5.5 years prior to December 2016. On the other hand, U.S. Treasuries held in the emblematic tax haven of the Cayman Islands rose by $38.5 billion during the same time period, and those held in Bermuda rose by $7 billion.

educed holdings. If you hold U.S. Treasury bonds implicitly, you can easily avoi

ing of the Russian Central Bank’s overseas assets as an opportunity to reduce its holdings of US treasuries, in addition to asset management based on market trends. To Chin

a result of financial sanctions from the United States, Europe, and Japan in respon

Declining demand for U.S. Treasury bonds as a proxy for U.S. dollars refl

hat rubles and yuan would replace the US dollar as the settlement currency for natural g

recipient of RMB settlements made outside of mainland China. Buying fossil fu

ich is 2.3 times higher than the same month the previous year. That’s the highest number recorded since records began in 2017. Gold has the benefit of being easily liquidated and ca

r 2018 and the end of August of this year. Foreign exchange reserves and gold m

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