The latest data recently released by the US Treasury Department shows that: "China's US debt in that month decreased by 654.38+006 billion US dollars to 848.8 billion US dollars, the lowest level since June 2065.438+00. At the same time, although Japan, the largest overseas holder, reduced its holdings by $22.6 billion to 1.082 trillion in February, China is still the second largest holder after Japan. "
Friends who are concerned about this should know that China has reduced its holdings of US debt for seven consecutive months. In addition, not only did China reduce its holdings of American debt, but many countries and banks, such as Japan, also stopped buying American debt. The total amount of US debt held by countries dropped by as much as 3.3 1%, from 7,655.9 billion to 7,402.5 billion.
So why did China reduce its holdings of US debt? In my opinion, there are three main reasons:
The first is the strength of our country itself. RMB is becoming more and more popular in the world, and it has certain credit support. Five or six years ago, RMB could not be used to directly settle natural gas and oil, but now it can be partially settled, and there is no longer such a strong need for US debt as a value support. Moreover, with the strengthening of national strength and the deepening of international cooperation, there are more and more bilateral agreements, which can directly use RMB to conduct currency transactions with traders.
The second is the depreciation of the dollar. The depreciation of the dollar can be said to be the general trend. This is not what I imagined. It can be seen from the previous Fed rate hike and the downgrade of the Fed rating. In addition, the credit of the United States is becoming less and less optimistic internationally, and the funds of trading users are frozen and blocked at will. Russia is a good example.
The risk of American debt is also increasing. The huge amount of US debt also makes countries or banks that hold US debt panic. Even if America, which has broken its promise, is willing to pay its debts on time, can such a large sum of money be repaid? Moreover, the United States may also reduce the currency interest rate in other ways, so as to achieve liquidation default.
Therefore, it can be said that it is imperative for the state to reduce its holdings of US debt. When we reduce our holdings of US Treasury bonds, the money will also be used for new investments.
On the one hand, we will increase our gold reserves. Practice has proved that buying gold has always been one of the most valuable ways, especially in this complex and changeable era with many uncertainties. Some time ago, data showed that China's gold holdings increased by 120 tons in five months, and the total gold reserves reached 2,076 tons.
On the other hand, we will still increase the scale of foreign exchange reserves. Although American debt should be reduced, holding sufficient foreign exchange reserves is a development need and a means to strengthen international exchanges. Therefore, we will increase the assets or currencies of other countries to meet the needs of foreign exchange reserves. In fact, on the whole, the foreign exchange reserves of our country have remained basically unchanged in recent years.
Domestic construction is also increasing. There is no denying that there is still a certain gap between our country and the United States, but we are developing rapidly and development needs capital investment. The money saved from the reduction of US debt will be used for domestic stocks, investments and bonds to attract more domestic and foreign capital injection.
The ultimate goal of reducing American debt is to maximize the benefits of our assets. However, since the US dollar is still the largest mainstream currency in the world, it cannot be completely thrown away. I also hope that one day the RMB can compete with the US dollar.