India’s exposure to US govt securities touches $83 bn in Dec

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Washington | Published: February 22, 2015 11:41:59 AM

Touching one-year high, India's exposure to US government securities stood at USD 83 billion in December...

US govt, US govt securities, India US govt securitiesIndia has been hiking its holdings since October 2014 when the same stood at USD 77.5 billion. (Reuters)

Touching one-year high, India’s exposure to US government securities stood at USD 83 billion in December, amid the world’s largest economy seeing signs of recovery.

India, one of the significant holders of securities issued by the US Treasury Department, has been increasing its exposure intermittently during last year. In December 2013, the country’s exposure was worth only USD 68.5 billion.

Neighbouring China remained the largest holder of such securities with exposure worth over USD 1.24 trillion at the end of December last year. However, it was lower than USD 1.25 trillion seen in November.

Latest data from the Treasury Department shows that India’s holdings rose to USD 83 billion in December, an increase of USD 2.5 billion compared to the previous month. In November last year, the exposure touched USD 80.5 billion.

India has been hiking its holdings since October 2014 when the same stood at USD 77.5 billion.

Among the BRIC nations, India has the least exposure to US government bonds. At the end of December, after China, Brazil had the maximum exposure at USD 255.8 billion followed by Russia with holdings worth USD 86 billion.

In the three months ended December, American economy grew 2.6 per cent, as per latest estimate from the US Bureau of Economic Analysis.

“The sum total in December of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a monthly net Treasury International Capital (TIC) outflow of USD 174.8 billion.

“Of this, net foreign private outflows were USD 143.7 billion, and net foreign official outflows were USD 31.1 billion,” the Treasury Department said in a recent statement.

Foreign residents increased their holdings of its bills by USD 24.8 billion in December. Foreign resident holdings of all dollar-denominated short-term US securities and other custody liabilities increased by USD 10.1 billion, it added.

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