BRICS: China Dumps $21B Net US Treasuries Since Beginning of 2024
BRICS member China has dumped over $21 billion in its US treasuries since the beginning of 2024. The data is highlighted by the largest sell-off initiated by China ever recorded, with $53.3 billion dumped in Q1 2024 alone. Data from Q3 2024 has yet to be compiled, but at recent rates, could add $5B-$10B more dumped by the BRICS founder this year.
China and other BRICS countries have been offloading US treasuries worth billions since 2022. The Communist country has a record of dumping the highest in the last two years. The development indicates that BRICS and other developing countries want to move away from owning US assets in their reserves. The greenback has suffered from de-dollarization and inflation over the same period of years. Now, more countries around the world are eyeing BRICS as an alternative to not suffer the same fate at the hands of the US dollar.
US Debt reached over $35.6 trillion in 2024, much to the fear of USD supporters and the appeal of BRICS countries. China has been one of the biggest promoters of de-dollarization, using its native Yuan and local currencies in trades with other countries.
China Dumps US Treasuries, Picks Up Gold
Furthermore, While they’re selling treasuries, China is also massively accumulating gold in its reserves. China and the BRICS alliance are the largest buyers of gold in 2022, 2023, and even 2024. Last year alone, China purchased several tonnes of gold worth $550 billion to its reserves. This fits into the long-standing narrative that the new BRICS currency will be backed by the precious metal.
Also Read: BRICS: Expert Says US Dollar is Nearing The ‘End of the Line’
China and the BRICS bloc are moving further away from the US dollar, treasuries, and government debt bonds. Stephen Chiu, Chief Asia Foreign-Exchange and Rates Strategist at Bloomberg Intelligence believes that this will continue, especially as tensions rise between the US and BRICS. “China’s selling of US securities could speed up as US-China trade war resumes,” the strategist said earlier this year. This especially rings true if Republican nominee for President Donald Trump is elected this November. Therefore, BRICS and China are resorting to dumping the US treasuries before that happens, to have a leg up after this year’s US election.