BRICS: China sold off $74 billion in US securities in one year

The significant decline in China's holdings of US Treasuries over the past year, amounting to more than $74 billion, reflects a significant shift in global economic dynamics.

The reduced Chinese holdings, fell down from $849 billion to $775 billion between the second quarter of 2023 and the second quarter of 2024, marking the lowest level since 2009. This trend is consistent with the statements of Russian Foreign Minister Sergey Lavrov, who emphasized the decreasing dependence on the US dollar in bilateral trade between Russia and China.

Lavrov's claim that Russia and China have significantly reduced their use of the dollar in their mutual trade underscores a broader move away from dependence on the dollar. With more than 90% of payments between Russia and China already taking place in their respective national currencies, the two countries are actively diversifying their financial transactions despite opposition from Western countries.

Lavrov's comments also shed light on growing economic cooperation between the countries of the Commonwealth of Independent States (CIS), which includes countries from the former Soviet Union. Despite pressure from the US and the EU to refrain from cooperation with Russia and Belarus, trade flows in the CIS region have expanded to exceed $100 billion, demonstrating resilience against external sanctions.

As Lavrov stated, these events signal a gradual but inevitable change in the dominant role of the dollar in global financial systems. Continued efforts by Russia, China and other countries to strengthen economic ties outside the traditional framework controlled by the US dollar suggest a realignment of international economic relations in the coming years.