China Reduces U.S. Treasury Holdings by $101.9 Billion

China has reduced its holdings of U.S. Treasury securities by $101.9 billion over the past year, according to the latest data.

The Treasury Department reported that China’s holdings dropped from $869.3 billion in March last year to $767.4 billion in March this year.

This marks a continued decline from China’s peak holdings of $1.31 trillion in November 2013. The reduction comes as China moves away from the dollar in international trade and the BRICS nations consider launching a digital currency to rival the U.S. dollar.

Federal Reserve officials have taken note of these changes. At a recent conference, Fed Governor Christopher Waller addressed the speculation about the dollar’s future. He acknowledged that while the dollar’s role is evolving, it remains the world’s predominant currency.

Waller commented on the resilience of the dollar, stating, “The role of the U.S. in the world economy is changing, and finance is always changing. The dollar remains by far the most widely used currency by a number of metrics.”

He also mentioned that U.S. sanctions and the rise of digital currencies could challenge the dollar’s dominance but maintained that there are few viable alternatives. In February, Waller emphasized that during global crises, nations still turn to the dollar, not away from it.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.