Saudi Gazette report

RIYADH — Saudi Arabia has increased its holdings of US Treasury bills and bonds by $2.4 billion (1.7 percent) reaching $142.7 billion during July 2024, and this was in anticipation of a US interest rate cut announced on Wednesday. This is also to benefit from the attractive returns on the safest debt instruments in the world in light of the highest interest rates in more than 20 years, Al-Eqtisadiah newspaper reported.

According to data from the US Treasury Department, Saudi Arabia's holdings at the end of July were the highest since March 2020, coinciding with the coronavirus pandemic, when they were $159.1 billion, while its ranking had not changed in July, remaining 17th among the largest investors in US debt instruments.

On a year-on-year basis, Saudi Arabia increased its holdings by 31 percent with purchases worth $33.5 billion during the year, up from $109.2 billion in July 2023. The Kingdom's holdings of US bonds have been on a steady rise until the coronavirus pandemic, when holdings were reduced and then it resumed buying again since July 2023, meaning it has been buying for the 12th consecutive month.

These figures include Saudi investments in treasury bonds and bills only, and do not include other investments in securities, assets and cash in the US dollar. As for global holdings of US bonds, they rose 1.6 percent in July on a monthly basis to $8.34 trillion.

Japan maintained its position as the largest investor in US debt instruments despite its holdings declining to $1.12 trillion in July, followed by China, which reduced its investments to $776.5 billion.