RIYADH: Saudi Arabia increased its holdings of US Treasury securities to $134.4 billion in October, maintaining its position among the world’s largest foreign holders, official data showed.
Holdings were up 0.07 percent from September, when they stood at $134.3 billion, according to data released by the US Treasury Department. The Kingdom’s portfolio had totaled $133.1 billion in August and $131.7 billion in July.
Saudi Arabia ranked 18th globally among foreign holders of US Treasuries during the month. Compared with January, its holdings were 5.91 percent higher, reflecting a gradual increase through the year.
The Kingdom and other countries invest in these bonds for their safety, diversification benefits, and alignment with their economic relationships with the US.
The allocation underscores Saudi Arabia’s preference for longer-dated US government debt as part of its foreign reserve strategy, focused on capital preservation, liquidity and diversification amid global market volatility.
The holdings included long-term bonds worth $106.3 billion, accounting for 79 percent of the total.
Short-term holdings stood at $28 billion, representing the remaining 21 percent.
In October, the UAE’s holdings of US Treasuries stood at $110.7 billion, placing the Emirates 20th on the list of major holders.
According to the report, Japan remained the largest foreign holder of US Treasury securities, totaling $1.20 trillion, up 1.69 percent from the previous month.
The UK ranked second with $877.9 billion, marking a 1.52 percent increase compared with September.
China’s holdings stood at $688.7 billion, followed by Belgium at $468.4 billion, Canada at $419.1 billion, and Luxembourg at $419 billion.
The Cayman Islands ranked seventh with holdings of $418.5 billion, while France and Ireland placed eighth and ninth with portfolios valued at $390.2 billion and $340.4 billion, respectively.
Taiwan ranked 10th with US Treasury holdings worth $309.5 billion.
Source: www.arabnews.com