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Friday, December 16, 2016, 09:38

Japan replaces China as top buyer of US treasuries

By Xinhua
Japan replaces China as top buyer of US treasuries
Pedestrians walk along a street in the Ginza shopping district in Tokyo on December 14, 2016. (Photo / AFP)

WASHINGTON - Japan overtakes China as the largest ho lder of US treasuries in October, as China's holding dropped to the lowest level since June 2010, data from the US Treasury Department showed on Thursday.

China cut its treasuries holding by US$41.3 billion in October, with the total holding down to US$1.1157 trillion. It has cut the holding for five consecutive months.

China cut its treasuries holding by US$41.3 billion in October, with the total holding down to US$1.1157 trillion

Japan also shed its treasuries holding by a smaller amount of US$4.5 billion to US$1.1319 trillion.

A strong US dollar has affected China's capital flows and the recent depreciation of the Chinese currency, renminbi, according to economists.

The State Administration of Foreign Exchange, China's forex regulator, said recently that China's cross-border capital flow has remained stable with no surges in foreign exchange purchases.

The forex regulator also noted that there is a solid basis for cross-border capital flow to remain stable, in view of China's low external debts, an opening inter-bank bond market, and a stable yuan exchange rate index.

By the end of October, overall foreign holdings of US Treasury securities dropped to 6.0389 trillion US dollars from September's US$6.1549 trillion.

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