China Slashes U.S. Treasury Holdings to 2009 Levels as Gold Reserves Soar
China is quietly reshaping its global financial strategy by distancing itself from U.S. government debt and deepening its commitment to gold.
In April, Beijing reduced its U.S. Treasury holdings to just over $757 billion — the lowest level in more than 15 years. This marks a significant retreat from its once-dominant position and drops it behind the UK as a foreign holder of American debt.
The move aligns with a broader pattern that’s been unfolding for years. As part of a long-term diversification plan, China has been shifting its foreign exchange reserves away from the U.S. dollar. Gold, in particular, has emerged as a preferred asset: its share of China’s reserves has doubled since 2022, now reaching nearly 7%.
Analysts say this transformation is not just about reducing dollar exposure — it’s a hedge against geopolitical risks and financial sanctions. China’s central bank has added around 200 tonnes of gold in the past two years, underscoring a growing mistrust in the stability of dollar-denominated assets.
The U.S. dollar index has also struggled, falling more than 15% since 2022. And according to author Nassim Taleb, gold is already functioning as the world’s true reserve currency, even if trade is still largely conducted in dollars. He argues that many governments, especially after seeing Western sanctions freeze foreign assets, now prefer the permanence and neutrality of gold as a store of value.
As confidence in the dollar erodes, China’s pivot could signal the beginning of a broader realignment in how nations manage their reserves — and in what they ultimately trust to protect them.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
