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As of January 2023, foreign countries owned $7.4 trillion in Treasurys, roughly 24% of US debt. Over the past two decades, central banks and other government entities have owned 50–75% of foreign-owned debt. Independent investors and companies held the rest.
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For the past 20 years, Japan and China have owned more US Treasurys than any other foreign nation. Japan’s ownership grew from $534 billion in 2000 to just over $1 trillion in 2022, while China’s ownership grew from $101 billion to $855 billion.
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Rounding out the top five foreign owners of US debt are the United Kingdom ($668 billion), Belgium ($331 billion), and Luxembourg ($318 billion).
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In 2000, $1.7 trillion — or 18% of total debt — was foreign-owned. This reached $7.7 trillion by 2014, or 34% — the highest percentage in history. However, foreign debt ownership fell early in the pandemic as Saudi Arabia, China, Brazil, and other nations sold securities for short-term capital. Countries resumed buying foreign debt by the end of 2020.
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US securities are one of the most secure assets in the world, hence why foreign investors buy them up. The American government is committed to repaying debts on time, which can be especially attractive in times of economic uncertainty. In fact, owning US dollars as Treasurys is a part of many foreign monetary policies.
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