China Diversifies Forex Reserves Away From US Treasuries

China has significantly reduced its US Treasury holdings, reaching a 17-year low, as part of a strategy to diversify its forex reserves. This move, amid growing tensions with Washington, aligns with China's push towards gold and overseas equity investments. Experts highlight China's efforts to optimize its foreign assets.

China has cut its US Treasury holdings to a 17-year low, signaling a strategic shift in its foreign exchange reserves. The holdings dropped to USD 682.6 billion in November last year, a decline from USD 688.7 billion in October, marking the lowest level since 2008, according to the US Department of the Treasury.

This move comes as foreign ownership of US debt reaches record highs with Japan and the UK bolstering their holdings. Japan increased its holdings by USD 2.6 billion to USD 1.2 trillion, and the UK by USD 10.6 billion to USD 888.5 billion.

China's strategic reallocation of reserves aims to enhance stability and resilience, shifting focus to gold and overseas investments. The People's Bank of China reported an increase in gold reserves to 74.15 million ounces, marking the 14th consecutive month of growth, strengthening China's ability to withstand external economic risks.

(With inputs from agencies.)