U.S. sanctions Archives - Marketplace

Why is China reducing its U.S. debt holdings?

by Lily Jamali

Jul 19, 2022

China cuts it U.S. debt portfolio to under $1 trillion, possibly to support its currency or reduce exposure to potential U.S. sanctions.

One reason China may be shedding U.S. Treasurys is to control the depreciation of its currency, the yuan, which has lost value as the dollar has strengthened.

Olivier Douliery/AFP via Getty Images

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