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Russia is dumping US debt and buying gold instead

Jul 19, 2018, 15:37 IST

US President Donald Trump (L) chats with Russia's President Vladimir Putin as they attend the APEC Economic Leaders' Meeting, part of the Asia-Pacific Economic Cooperation (APEC) leaders' summit in the central Vietnamese city of Danang on November 11, 2017.MIKHAIL KLIMENTYEV/AFP/Getty Images

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  • Russian ownership of US Treasury bonds has dropped from $96.1 billion in March to an 11-year low of $14.9 billion, latest figures show.
  • The US Treasury released a list of the top 33 national investors in its bonds on Tuesday. Russia, once in the top 10, was absent.
  • Elvira Nabiullina, head of the Central Bank of Russia (CBR), said cutting the stake is due to an assessment of financial, economic, and geopolitical risks.
  • Russia has been buying gold as it sells off US bonds, recently overtaking China as the world's biggest holder of gold, with $80.5 billion-worth.


The Russian Federation has sharply reduced its holdings of United States Treasury bonds with Russian ownership recently moving to an 11-year low, RT and Wolf Street reported.

Russia's ownership of US bonds declined from $96.1 billion in March to $48.7 billion in April and now stands at just $14.9 billion, according to the latest available data.

The US Treasury on Tuesday released a list of the top 33 investors in US debt. Russia was in the top ten in 2010 with ownership of $176.3 billion, but it now ranks below Chile in terms of US Treasury holdings.

The Russian sell-off began in 2011 and has intensified as the US has raised sanctions against the country.

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Elvira Nabiullina, head of the Central Bank of Russia (CBR), said the reduction is due to an assessment of financial, economic, and geopolitical risks, RT reported.

The Russian Federation has been buying large amounts of gold as it continues to sell US Treasury bonds, recently overtaking China as the world's biggest holder with $80.5 billion-worth, according to the CBR.

China holds at $1183 billion of US debt, the most of any foreign country.

Turkey has also nearly halved it's US debt holdings from $62 billion in 2017 to $32.6 billion in May. Germany's position stands at $78.3 billion.

The US currency has come under increasing pressure in 2018 as US debt mounts.

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