China has divested over $21 billion in US treasuries in 2024 alone, marking a significant financial shift.
This sell-off reflects a broader BRICS trend of de-dollarization and a strategic pivot towards alternative reserves.
China’s recent decision to offload over $21 billion in US treasuries in 2024 highlights the nation’s largest recorded sell-off of these assets. In the first quarter alone, China dumped $53.3 billion, setting a precedent in BRICS financial strategies.
This strategy is driven by concerns over US inflation and de-dollarization, encouraging BRICS members to seek economic stability through alternative reserves.
Stephen Chiu, an expert at Bloomberg Intelligence, suggests that geopolitical tensions might accelerate China’s treasury sell-off, especially amidst the ongoing US-China trade disputes.
BRICS countries, led by China, are setting a new economic narrative that challenges decades of dollar dominance, potentially reshaping global trade dynamics.
The potential re-election of Donald Trump could further fuel China’s divestment strategy to preempt policy shifts favouring US economic interests.
China’s financial manoeuvring thus creates a strategic pressure point in global economics, emphasizing the need for a diversified approach to international reserves.
As BRICS countries continue their strategic shift, the future of the US dollar as a primary global reserve currency is questioned. This movement suggests an evolving landscape in international finance.
China’s treasury sell-off in 2024 indicates a pivotal economic shift, questioning the long-standing supremacy of the US dollar.
This trend heralds a new era in global finance, led by BRICS, challenging traditional financial norms.
