China Dumps $8.2B US Treasuries in BRICS Payback, Sells $900M Again
BRICS member China has once again dumped over $900 million worth of US Treasuries and trimmed its central bank holdings. The Communist country is diversifying its reserves with gold instead of holding on to the US dollar-denominated financial assets. China has trimmed its holdings for three months in a row and has purchased gold worth a total of $247.8 billion.
US Treasuries and bonds are being offloaded in the markets not only by China but by other BRICS countries too. India, Russia, Brazil, South Africa, and Egypt also initiated sell-offs last year and accumulated gold in their Central Bank reserves. They were right in their investment decisions, as gold is soaring in value this year, making their investments bear fruit.
The development would add pressure on the US dollar-denominated assets, causing turbulence in the financial markets. China’s BRICS retaliation move against US Treasuries would pump the XAU/USD index, which has reached $3,400 on Tuesday while lowering the DXY index simultaneously. The US dollar’s DXY index has already dipped below the 98 range and is displaying weaker sentiment.
China is leaving no stone unturned and is selling US dollar-denominated bonds and Treasuries on a larger scale. China has sold nearly $8.2 billion worth of Treasuries in April 2025, according to the latest data released by the the US Treasury Department. The sell-off comes after Trump imposed sweeping tariffs on many countries in early April on Liberation Day.
Also Read: China To Sell Flying Taxis to BRICS Members Russia & UAE by 2027
In a BRICS counter-attack measure, China sold the US dollar-denominated bonds and Treasuries trimming their holdings in American assets. The Communist country is cutting ties with America-funneled assets and accumulating gold in its central bank reserves instead. Apart from gold, they are also diversifying reserves with other leading local currencies to end dependency on the US dollar.
BRICS: China Cutting Ties With US Dollar Treasuries, Bonds
Data shows that BRICS member China held $1,350 billion worth of US dollar Treasuries and bonds in FY 2012-13. However, the holdings are now down to $757 billion in April 2025, which is a decline of approximately 44%. That’s a steep sell-off in just 13 years and $273 billion worth of Treasury assets have been erased from the Chinese central banks.
Also Read: Why Trump Sees BRICS as the Biggest Threat to US Dominance
If many BRICS countries and other developing nations start to follow in China’s footsteps by dumping dollar bonds and Treasuries, the US will find it harder to fund its deficit. China is currently the third-largest holder of US Treasury debt and things could get serious if the sell-off occurs regularly. It is only behind Japan and the United Kingdom which hold the top two positions on the dollar-denominated debt.
BRICS member “China’s April reduction in US Treasury holdings is mainly due to the need for diversified foreign exchange reserve allocation,” Xi Junyang, professor at the Shanghai University to the Global Times on Thursday. He noted that the sell-off could occur regularly as China has been dumping Treasuries very strongly since 2022.
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China Dumps $8.2B US Treasuries in BRICS Payback, Sells $900M Again
BRICS member China has once again dumped over $900 million worth of US Treasuries and trimmed its central bank holdings. The Communist country is diversifying its reserves with gold instead of holding on to the US dollar-denominated financial assets. China has trimmed its holdings for three months in a row and has purchased gold worth a total of $247.8 billion.
US Treasuries and bonds are being offloaded in the markets not only by China but by other BRICS countries too. India, Russia, Brazil, South Africa, and Egypt also initiated sell-offs last year and accumulated gold in their Central Bank reserves. They were right in their investment decisions, as gold is soaring in value this year, making their investments bear fruit.
The development would add pressure on the US dollar-denominated assets, causing turbulence in the financial markets. China’s BRICS retaliation move against US Treasuries would pump the XAU/USD index, which has reached $3,400 on Tuesday while lowering the DXY index simultaneously. The US dollar’s DXY index has already dipped below the 98 range and is displaying weaker sentiment.
China is leaving no stone unturned and is selling US dollar-denominated bonds and Treasuries on a larger scale. China has sold nearly $8.2 billion worth of Treasuries in April 2025, according to the latest data released by the the US Treasury Department. The sell-off comes after Trump imposed sweeping tariffs on many countries in early April on Liberation Day.
Also Read: China To Sell Flying Taxis to BRICS Members Russia & UAE by 2027
In a BRICS counter-attack measure, China sold the US dollar-denominated bonds and Treasuries trimming their holdings in American assets. The Communist country is cutting ties with America-funneled assets and accumulating gold in its central bank reserves instead. Apart from gold, they are also diversifying reserves with other leading local currencies to end dependency on the US dollar.
BRICS: China Cutting Ties With US Dollar Treasuries, Bonds
Data shows that BRICS member China held $1,350 billion worth of US dollar Treasuries and bonds in FY 2012-13. However, the holdings are now down to $757 billion in April 2025, which is a decline of approximately 44%. That’s a steep sell-off in just 13 years and $273 billion worth of Treasury assets have been erased from the Chinese central banks.
Also Read: Why Trump Sees BRICS as the Biggest Threat to US Dominance
If many BRICS countries and other developing nations start to follow in China’s footsteps by dumping dollar bonds and Treasuries, the US will find it harder to fund its deficit. China is currently the third-largest holder of US Treasury debt and things could get serious if the sell-off occurs regularly. It is only behind Japan and the United Kingdom which hold the top two positions on the dollar-denominated debt.
BRICS member “China’s April reduction in US Treasury holdings is mainly due to the need for diversified foreign exchange reserve allocation,” Xi Junyang, professor at the Shanghai University to the Global Times on Thursday. He noted that the sell-off could occur regularly as China has been dumping Treasuries very strongly since 2022.
Read More
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