The official data reported that Saudi Arabia raised its US Treasury securities to $134.4 billion in October, marking it as one of the largest foreign holders of US Treasury securities in the world.
According to data released by the US Treasury Department, holdings increased 0.07 percent compared to September, when they were at $134.3 billion. The portfolio of the Kingdom had reached at $133.1 billion and $131.7 billion in August and July, respectively.
Saudi Arabia was ranked 18th worldwide among foreign holders of US Treasuries during the month. Its holdings are 5.91 percent higher than in January, and this shows a gradual increase throughout the year.
The Kingdom and other nations invest in these bonds in order of their safety, diversification advantages, and alignment of their relationship with the US economy.
The allocation highlights that Saudi Arabia favors longer-term US government debt as a component of its foreign reserve policy, which is about capital conservation, liquidity, and diversification, and global market volatility.
Therefore, the holdings consist of long-term bonds totaling of $106.3 billion, which represent 79 percent overall. The short-term holdings remained at $28 billion, representing the remaining 21 percent.
Meanwhile, the UAE holdings of US Treasuries were at $110.7 billion in October, which puts the Emirates at 20th in the rank of large holders. The report indicated that Japan was the largest foreign holder of US Treasury securities with a total of $1.20 trillion, which is an increase of 1.69 percent over the past month.
The UK was second with a value of $877.9 billion, which is an increase of 1.52 percent on September. China’s holdings stood at $688.7 billion, after Belgium remained at $468.4 billion, Canada at $419.1 billion, and Luxembourg at $419 billion.
The Cayman Islands ranked in seventh position with holdings of $418.5 billion, but France and Ireland placed eighth and ninth with portfolios valued at $390.2 billion and $340.4 billion. Thus, Taiwan was ranked 10th with US Treasury holdings of about $309.5 billion.
