In accordance with the data from the United States (US) Treasury Department, India became the 12th largest holder of US government securities at the end of April, 2020 with holdings of worth $157.4 billion, which has increased marginally by $0.9 billion in comparison to March month’s $156.5 billion.
- Notably, the holding touched a record high of $177.5 billion in February, 2020 which was drastically reduced in March.
- The country with maximum exposure to US government securities is Japan at US$1.266 trillion followed by China and the United Kingdom (UK) at the second and third positions, respectively at the end of April 2020.
Following are top 5 holders of US Government Securities:
| Rank | Country | US Govt Securities Holdings US$ |
|---|---|---|
| 12 | India | 157.4 billion |
| 1 | Japan | 1.266 trillion |
| 2 | China | 1.073 trillion |
| 3 | UK | 368.5 billion |
| 4 | Ireland | 300.2 billion |
| 5 | Luxembourg | 265.5 billion |
Reason behind rise in India’s rank
India was at 13th place in March 2020 climbed to the 12th position in April due to the decrease of exposure in US govt securities by Saudi Arabia to $125.3 billion. The latter has been ranked at 15th spot for April end 2020 in comparison to 12th position at March end 2020 with holdings of $159.1 billion.
About US govt Securities:
The US dollar/ Treasury Securities (Bills, Notes, Bonds, Inflation-Protected Securities) backed by the US treasury department are one of the safest asset class for any central bank with regards to investment, despite getting the lowest returns.
- These American securities are held by the Reserve Bank of India (RBI) as it invests in foreign assets as part of its prudential liquidity management.
About US:
Capital– Washington, D.C.
President– Donald John Trump
