Russia and Saudi Arabia dump $50bn in US assets

https://www.rt.com/business/345046-russia-saudi-us-assets/

Investors from Russia and Saudi Arabia have cut their combined holdings of US securities by more than $50 billion between mid 2014 and 2015, reports the Financial Times.

Over the period, Saudi Arabia reduced its holdings by $26 billion, according to an annual US Treasury survey published earlier this week. The Treasury recently unveiled the scale of Saudi buying of US government debt that had dropped by $3 billion to about $116 billion from February to March.

Russian investment in US holdings has more than halved since the 2008 financial crisis to roughly $73 billion by the end of last June.

After crude prices plunged in January to $28 per barrel from $110 in June 2014, the governments of both countries had to search for alternative funding sources to balance their budgets. Although prices have stabilized close to $50 per barrel, Moscow and Riyadh are still facing deficits.

Russia sold $1.75 billion worth of debt last month. Saudi Arabia has announced its own bond sale to raise $15 billion in capital.

Foreign purchases of US securities hit a record $17.1 trillion in June 2015, up four percent from a year earlier. This is largely due to increased holdings by Luxembourg, the UK, Ireland and the Cayman Islands, according to the US Treasury.

———-

ouch..

“Investors from Russia and Saudi Arabia have cut their combined holdings of US securities by more than $50 billion between mid 2014 and 2015, reports the Financial Times.”

more coming to..

401

~ by seeker401 on June 6, 2016.

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