Saudi Arabia’s Strategic Increase in US Treasury Holdings
Saudi Arabia has boosted its US Treasury bills and bonds holdings by $2.4 billion, reaching a total of $142.7 billion in July 2024. This move aligns with the anticipation of a US interest rate cut and aims to capitalize on the high returns from these secure debt instruments, as reported by Al-Eqtisadiah.
Data from the US Treasury Department reveals that these holdings are the highest since March 2020, during the coronavirus pandemic, when they were $159.1 billion. Saudi Arabia remains 17th among the largest investors in US debt instruments.
Year-on-year, Saudi Arabia’s holdings have increased by 31 percent, with purchases totaling $33.5 billion over the past year, up from $109.2 billion in July 2023. The Kingdom has been consistently buying US bonds for 12 consecutive months since July 2023, after a reduction during the pandemic.
These figures solely reflect Saudi investments in treasury bonds and bills, excluding other securities, assets, and cash in US dollars. Globally, US bond holdings rose by 1.6 percent in July, reaching $8.34 trillion.
Japan remains the largest investor in US debt instruments, with holdings at $1.12 trillion, followed by China at $776.5 billion, despite both countries reducing their investments.