India’s Holding Of U.S. Government  Securities Jumps To $162.7 Billion
50 subject one dollar note sheets sit in a stack before receiving a serial number. (Photographer: Andrew Harrer/Bloomberg) 

India’s Holding Of U.S. Government Securities Jumps To $162.7 Billion

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India’s exposure to U.S. government securities rose by nearly $6 billion to $162.7 billion as of June, the highest level in at least one year.

Data from the U.S. Treasury Department as of June showed that Japan was the largest holder, with holdings of American government securities worth $1.122 trillion, followed by mainland China, whose exposure stood at $1.112 trillion.

At nearly $162.7 billion, India’s the 13th highest holder of treasury securities. The exposure was $156.9 billion in May and $155.3 billion in April, according to the data.

India’s holding in June was also the highest in at least one year, as per an analysis of the data from June 2018, when the holding was worth nearly $147.3 billion.

The substantial rise in exposure also comes at a time when the global economy is grappling with multiple headwinds, including a trade war and prospects of slowdown in some emerging markets.

Other nations, ranked on the basis of their treasury holdings, are, U.K. ($341.1 billion), Brazil ($311.7 billion), Ireland ($262.1 billion), Switzerland ($232.9 billion), Luxembourg ($231 billion), Cayman Islands ($226.6 billion), Hong Kong ($215.6 billion), Belgium ($203.6 billion), Saudi Arabia ($179.6 billion) and Taiwan ($175.1 billion).

“Foreign residents increased their holdings of long-term U.S. securities in June; net purchases were $63.8 billion. Net purchases by private foreign investors were $63.2 billion, while net purchases by foreign official institutions were $0.5 billion,” the Treasury Department said in a release on Friday.

“... taking into account transactions in both foreign and U.S. securities, net foreign purchases of long-term securities were $99.1 billion.”

Also read: FPIs Pull Out Rs 8,319 Crore In August Amid Persisting Negative Sentiment

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