Japan replaces China as top buyer of US treasuries
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An employee at a bank counter in Nantong, Jiangsu province, counts renminbi and dollars. [Photo/China Daily] |
China cut its treasuries holding by $41.3 billion in October, with the total holding down to $1.1157 trillion. It has cut the holding for five consecutive months.
Japan also shed its treasuries holding by a smaller amount of $4.5 billion to $1.1319 trillion.
A strong US dollar has affected China's capital flows and the recent depreciation of the Chinese currency, renminbi, according to economists.
The State Administration of Foreign Exchange, China's forex regulator, said recently that China's cross-border capital flow has remained stable with no surges in foreign exchange purchases.
The forex regulator also noted that there is a solid basis for cross-border capital flow to remain stable, in view of China's low external debts, an opening inter-bank bond market, and a stable yuan exchange rate index.
By the end of October, overall foreign holdings of US Treasury securities dropped to $6.0389 trillion from September's $6.1549 trillion.
