BRICS member Russia has dumped $4.5 billion in U.S. bonds over the last two years. After the U.S. pressed sanctions on Russia in February 2022 for invading Ukraine, the Central Bank offloaded $30 million worth of bonds. The dump in 2022 was just a start and the country has been steadily offloading U.S. debt in the market.
Also Read: 10 U.S. Sectors To Be Affected if ASEAN Ditches the Dollar
The latest data shows that BRICS member Russia dumped a total of $4.5 billion in U.S. bonds in two years. The sell-off stands in line with the BRICS agenda of de-dollarization and cutting ties with the U.S. economy. The move adds pressure on the U.S. dollar if developing countries begin distancing themselves from the American economy.
Read here to know how many sectors in the U.S. will be impacted if BRICS ditches bonds and the dollar for trade. The development could lead to hyperinflation in the U.S. making the prices of daily essentials skyrocket in the homeland. The U.S. economy needs investments from offshore countries through bonds to fund its deficit.
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BRICS: Both Russia & China Dump U.S. Bonds In 2 Years
BRICS member Russia is not the only country that is doing away with the U.S. bonds. China takes the top spot in offloading U.S. bonds and has sold nearly $74 billion in the last seven months alone. The Communist nation has been accumulating gold in its reserves after dumping U.S. dollars for the last 24 months.
Also Read: BRICS: 73 Central Banks Buy US Dollar, Ditch Chinese Yuan
BRICS country China’s Central Bank (PBOC) has been the largest buyer of the precious metal since 2022 and not U.S. bonds, reported the World Gold Council. Overall, the BRICS bloc has been the top purchaser of gold for two years outpacing institutional funds and global retail investors. Speculations were rife that the alliance could back their new BRICS currency with gold. However, none of that is confirmed as the BRICS currency is yet to take shape.
