Bonds, Currencies, Emerging Markets, Stocks

Russia Continues Increasing Its Exposure To U.S. Treasuries – Two Goals At The Back Of This Operation

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Russia continues increasing its holdings in US Treasuries. There are two major goals at the back of this operation:

  1. secure fixed income denominated in foreign currency,
  2. deepen US sovereign debt.

Russia has increased its holdings of US sovereign debt by $4.8 billion in 2016, according to the US Treasury Department.

US Debt

According to the vast majority of financial analysts, the U.S. treasuries remain one of the most reliable financial tools in the global economy.

It is obvious that the Russian government has adopted this conservative investing policy and has invested in US treasuries,

Vladislav Kochetkov, head of Finam investment holding, told Ridus agency.

According to Sputnik News, despite the fact that last year Russia’s holdings of US Treasury securities decreased amid the tensions between Moscow and Washington, Russia never abandoned the policy of investing in the US debt. The Russian agency noted that

Since December 2014, Russia gradually decreased its holdings. In April 2015, they reached $66.5 billion. Since May 2015, Russia’s holdings have again been increasing.

According to Vladislav Kochetkov,

Buying US debt, Russia is securing its stable foreign exchange earnings and at the same time is deepening the debt of the world’s strongest economy. Russia is not only saving its gold and foreign currency reserves but also increasing them.

Russia is the 15th largest holder of US Treasury securities, with $96.9 billion. China leads the list with $1.24 trillion. Japan is second, with $1.12 trillion.

US Debt 2

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