China has just sent a signal that could weigh on the global financial balance. By massively liquidating its US Treasury bonds while strengthening its gold reserves, Beijing is carrying out a strategic repositioning with potentially profound implications. Behind these figures, a dynamic is emerging which calls into question the domination of the dollar and is already capturing the attention of the markets, including that of cryptos.
In brief
- China liquidated $623 billion in US Treasuries, reducing its reserves to their lowest level since 2008.
- This movement marks a major strategic repositioning in the management of its financial reserves.
- At the same time, Beijing has been accumulating gold for 17 consecutive months, reaching a record of $343 billion.
- This dual dynamic reflects a reorientation towards tangible assets, less dependent on the financial system dominated by the dollar.
China drastically reduces its exposure to the United States
While the BRICS strengthen their grip on gold, China has just liquidate $623 billion in US Treasury bonds. This announcement is accompanied by a now historically low level: “China only holds $694 billion, its lowest level since 2008”.
The advanced key data is as follows:
- The total sale: $623 billion in Treasuries;
- Current stock: $694 billion;
- A historic low point: the lowest level since 2008.
This repositioning marks a clear break with its previous trajectory. For decades, U.S. bonds have been a pillar of China's reserves. Their reduction to a level not seen since the global financial crisis reflects a significant change in orientation, without any official justification being specified.
Gold emerges as a new strategic axis
Alongside this disengagement, another movement is attracting attention. China's gold reserves have increased for 17 consecutive months, reaching $343 billion, a new record. This continued accumulation over more than a year contrasts with the sale of assets denominated in dollars and reveals an assumed choice in favor of gold.
This progression over 17 consecutive months reflects a strategy of strengthening tangible reserves. Gold, historically seen as a safe haven, seems to be regaining a central place in the allocation of Chinese reserves. This shift is part of a logic different from that of sovereign bonds, by favoring an asset independent of foreign monetary policies.
The BRICS are gradually establishing themselves as an alternative pole, strengthening their economic and monetary influence in a context of global restructuring of financial balances.
Such a choice could mark a lasting shift in monetary balances. While the major powers are adjusting their reserves, dedollarization is already accelerating after the Rio summit, opening a new phase of uncertainty and recomposition for global markets.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
