China's Bold Move: $74 Billion Dumped from US Treasuries in Just One Year, While Two BRICS Nations Signal Dollar-Free Trade

China has sold over $74 billion in US Treasuries over the past year, as reported by the Treasury Department. During Q2 2023 to Q2 2024, China decreased its holdings from $849 billion to $775 billion, marking its lowest holdings since 2009.

Minor Reductions by Other Countries

In addition to China's significant divestment, other nations also reduced their Treasuries holdings in smaller amounts during the last quarter. India sold $1.4 billion, Brazil unloaded $1.2 billion, and Saudi Arabia shed $0.3 billion.

Shift Away from Dollar in International Trade

The release of this data coincides with Russia's Foreign Minister Sergei Lavrov's announcement that Russia and China have substantially reduced their reliance on the dollar in mutual trade. Lavrov stated that over 90% of settlements between the two countries are now conducted in their national currencies, despite efforts by Western countries to impede this progress.

Growing Trade Flows Across CIS

Lavrov highlighted the growth in trade flows among CIS countries, which include nations formerly part of the Soviet Union. Despite threats of sanctions from the US and EU, trade within the CIS increased by over six percent last year, surpassing $100 billion. Lavrov emphasized the irreversibility of the trend away from the dollar, noting that CIS countries are actively pursuing further agreements to expand economic cooperation.

China's substantial reduction in US Treasuries holdings reflects a broader trend of countries diversifying away from the dollar in international trade. Russia and China's mutual abandonment of the dollar underscores the growing momentum towards alternative currencies in global transactions, despite challenges and threats from Western nations.