US debt hold­ings in­crease in Au­gust

China Daily (Canada) - - VIEWS - By CAI XIAO caix­iao@chi­nadaily.com.cn

China’s hold­ings of US trea­suries rose for a third con­sec­u­tive month in Au­gust to the high­est in a year on the back of ris­ing for­eign ex­change re­serves and ex­pec­ta­tions that the green­back may ap­pre­ci­ate fur­ther.

The coun­try’s to­tal hold­ings of US bonds, notes and bills rose by $34.5 bil­lio on a monthly ba­sis in Au­gust to $1.2 tril­lion, ac­cord­ing to data from the US Trea­sury Depart­ment on Tues­day.

Ja­pan, which over­took China as the largest holder of US trea­suries last Oc­to­ber, cut its hold­ings by $11.4 bil­lion to $1.1 tril­lion in Au­gust.

“China has con­tin­ued to in­crease its hold­ings of US trea­suries as it had a trade sur­plus and forex re­serves were in­creas­ing,” said Deng Haiqing chief economist of JZ Se­cu­ri­ties, adding that other fac­tors like a weaker euro had also prompted the pur­chases.

China’s for­eign ex­change re­serves rose to their high­est level so far this year in Septem­ber to $3.11 tril­lion, mark­ing a growth for the eighth straight month.

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