India cuts US govt securities exposure to $117 bn

India's holdings fell to $ 117.2 bn in June from $118 bn in May


For the second-straight month, India trimmed its holdings of American government securities to USD 117.2 billion in June.

Neighbouring China, which is the largest holder of such securities, too cut down its exposure to USD 1.241 trillion during the same period from USD 1.244 trillion in May.

Latest data from the US Treasury Department showed that India's holdings fell to USD 117.2 billion in June from USD 118 billion in the previous month.

At the end of April, India held American government bonds worth USD 121.6 billion.

Among the BRIC nations, India has the third largest holding of these securities after China and Brazil, whose exposure stood at USD 251.6 billion in June.

During the same time, Russia's holding touched USD 90.9 billion.

The second largest holder of US government securities is Japan whose exposure rose to USD 1.148 trillion at June end.

In May, the same stood at USD 1.133 trillion.

"Foreign residents increased their holdings of long-term US securities in June; net purchases were USD 7.6 billion.

Net purchases by private foreign investors were USD 36 billion, while net sales by foreign official institutions were USD 28.4 billion," the Treasury Department said last week.

Overall, net foreign sales of long-term securities are estimated to have been USD 38.9 billion in June, it had said in a release.

In the three months ended June, American economy expanded 1.2 per cent whereas in the first quarter real GDP rose 0.8 per cent.

PTI - Aug 22, 2016 12:00 IST