SaudiArabia has boosted its investments in U.S. treasury bonds by $5.4 billion, which translates to 4.3% monthly in August this year.
According to government data, the Saudi investments in U.S. treasury bonds climbed to $130 million in August in comparison to SAR 124.6 billion in the month of last July. The holding of U.S. Treasuries represents 71% of the total, with long-term bonds of $92.9 billion, and short-term bonds of $37.1 billion, amounting to 29%.
Saudi’s investments in U.S. Treasuries fell by 29% ($53.8 billion) year-on-year.
The kingdom ranks 16th globally in the list of the largest investors in U.S. Treasury bonds, followed by Japan with a value of $1.2 billion, and led by China with a value of $1.06 trillion.
The U.S. being a country with strong economy attracts investors to buy government bonds and make use of the investment opportunities- with a high credit rating and solvency.
As per the newest U.S. government data, total investments in the U.S. bonds add up to $7.08 trillion in August. Being the exporter and selling bonds in debt instruments makes for financing the budget deficit in the expenditures items- a win-win situation for investors and exporters.