India Sells $20 Billion in U.S. Treasuries, Boosts Gold Reserves

India has divested $20 billion from its holdings in U.S. Treasuries, reducing its total to $227 billion as of June 2025. This marks a significant shift in investment strategy, as the country increasingly favors gold, having boosted its reserves to nearly 880 metric tons.

The Reserve Bank of India’s decision to sell off U.S. debt reflects a broader trend among major economies, including Japan and China, which have similarly reduced their Treasury holdings. The decline in U.S. Treasury investments by India, down from $247 billion in June 2024, underscores a growing preference for gold as a safer asset in an uncertain global economic climate.

This strategic pivot comes at a time when geopolitical tensions and inflationary pressures are reshaping international financial markets. Analysts suggest that India"s move could be influenced by the need to stabilize its foreign exchange reserves and mitigate risks associated with fluctuating U.S. interest rates.

As countries like India reassess their investment portfolios, the implications for U.S. debt markets could be significant. With India still among the top 20 holders of U.S. Treasuries, its continued divestment may contribute to increased volatility in bond markets. Recent developments in global finance indicate this trend may persist as other nations evaluate their exposure to American debt amid ongoing economic shifts.

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