A total of three BRICS countries have unloaded $47 billion in US Treasuries in a month. The latest data from the US Treasury Department shows that China, Brazil, and India dumped the US dollar-denominated debt between June and July.
The US Treasuries sell-off from BRICS members comes as China and Russia strengthen their economic ties despite stricter sanctions by Trump. The alliance is sidestepping the US dollar, making way for developing countries to gain a strong hold on the global economy.
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BRICS: China, Brazil, and India Offloading US Treasuries
BRICS members China, Brazil, and India have combindly offloaded $47 billion worth of US Treasuries. China decreased its US debt holdings by $25.7 billion. It now holds $730.7 billion, compared to the previously recorded $756.4 billion in June.
In addition, BRICS member Brazil reduced its US Treasuries holdings by $13.6 billion during the same period. It now holds $210.7 billion after the reduction of the US debt.
India also dumped $7.7 billion in US Treasuries, making it the third BRICS country to do so. Its holdings went from $227.4 billion to $219.7 billion, which is a significant reduction. The Reserve Bank of India (RBI) has stepped up gold purchases, surpassing the $100 billion mark for the first time.
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In total, the three BRICS countries have sold $47 billion in US Treasuries in a month. The move is adding significant strain on the US dollar-denominated assets, which were once considered the bedrock of all investments. It is unlikely that the interest would soar again due to the unruly foreign policies from the White House.
BRICS members are accumulating gold and local currencies and diversifying their central bank reserves after offloading US Treasuries. Developing countries no longer find the US dollar-denominated assets lucrative. Holding on to US debt comes with greater risk as its national debt has crossed $38 trillion.