Written By Basilio Chen

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China holding of US Treasury falls to the lowest level since 2013.  Reportedly, China held $1.25 trillion in U.S. debt as of October, a $13.6 billion drop from September.  China remains the largest foreign holder, ahead of Japan, who holds $1.22 trillion.  Now China and Japan have a very narrow difference in holdings of US Treasury debt.

China’s overall foreign-exchange reserves, the world’s largest, stood at $3.89 trillion at the end of the third quarter 2014, down from a record $3.99 trillion at the end of June.  Thus, US Treasury represents China’s 32% of the total Forex reserves compared to 34.9% a year ago in October 2013.

Chinese export and factory activities has declined in 2014 being one contributing factor. 

While the Chinese Yuan has weakened 1.3 percent since October, it’s remains the only one among 31 major global currencies (as reported by Bloomberg) to strengthen against the dollar.

As of November 2014, the most traded currencies globally are:

  1. US Dollar
  2. Euro Dollar
  3. Japanese Yen
  4. British Pound
  5. Australian Dollar
  6. Canadian Dollar
  7. Chinese Renminbi
  8. Swiss Franc
  9. Hong Kong Dollar
  10. Thai Baht

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