China Dumps $21 Billion in US Treasuries; BRICS Moves Away from Dollar
China’s been on a treasury-selling spree, ditching a whopping $21 billion worth of US treasuries since the dawn of 2024. Talk about making waves! In fact, Q1 saw the biggest splash ever, with China unloading $53.3 billion. And the year’s not over yet—Q3 still needs number-crunching, but it’s shaping up to be another $5 to $10 billion on the chopping block. This trend isn’t just a 2024 one-hit wonder. China, along with other BRICS nations, has been steadily letting go of these treasuries since 2022. Seems like there’s a bit of a shift going on among these countries, wanting to slide away from stacking their reserves with US assets. This whole de-dollarization angle is shaking up the game, with eyes turning to BRICS as the potential new kid on the currency block.
Meanwhile, in the grand scheme of things, the US debt’s hit north of $35.6 trillion this year. China’s taking the lead with its de-dollarization strategy, opting to use its own Yuan and local currencies for trading. Oh, and did I mention gold? While they’re tossing treasuries, they’re hoarding gold like it’s going out of style. China’s been racking up tons of the shiny stuff, a key player since 2022, as the BRICS bloc loads up their gold reserves. Maybe they’re gearing up to back a new BRICS currency with the precious metal. Stephen Chiu at Bloomberg Intelligence thinks they’re not slowing down anytime soon—especially with tensions between the US and BRICS heating up. What’s the saying? Better safe than sorry, I guess. Find more insights on these developments in the detailed report on watcher.guru.
