“dropping from 16th to the 22nd place of major foreign holders of US T-bills. Russia now holds less US debt than…” Here’s the details…
The United States has levied numerous sanctions on Russia in the past couple of years.
Is it any wonder why Russia would no longer want to hold U.S. debt?
That’s what was reported from the most recent Treasury Department tic data.
Here’s reporting from RT:
Moscow will continue dumping US debt, according to analysts who spoke to RT. Latest US Treasury Department data shows Russia cut its holdings by half in April.
That month, Russia sold $47.4 billion out of the $96.1 billion held in March. The latest statistics released by the US Treasury on Friday showed that, Russia had only $48.7 billion investment in American debt, dropping from 16th to the 22nd place of major foreign holders of US T-bills. Russia now holds less US debt than the small island nation of Bermuda.
The sell-off should continue, since Russia and the US are barely trade partners, and Washington can always impose sanctions on the Russian holdings of its debt, Vladimir Rojankovski, investment analyst at Global FX said in a comment e-mailed to RT.
“In the era of sanctions investments in US Treasuries sooner or later can fall under sanctions. The volume of foreign trade with the US has only 3.5 percent share in Russia’s foreign trade. Countries usually hold bonds of their trading partners, so it is unreasonable to hold more than 10 percent of Russia’s foreign reserves in US Treasuries,” he said. Russian foreign reserves were $456 billion in May.
Since 2011, Russia has cut its holdings of US Treasuries by more than two-thirds, from over $150 billion to the current less than $50 billion.
And what could Russia be doing with the fiat currency they get for selling the U.S government debt?
Here’s a clue, from the World Gold Council:
Since government data and World Gold Council data lag, it will be very interesting to see updates to both the selling of Treasuries and the buying of gold.
Not only is Russia adding to their stack, but as previously reported, they are doing so at artificially low (i.e. suppressed) prices.
Something that value investors and contrarians alike all seem to understand.
That goes for both individuals and nations.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.