China is rapidly getting rid of $8.2 billion in U.S.

📌 China is rapidly getting rid of $8.2 billion in U.S. government bonds, while the dollar continues to fall.

Chinas share of U.S. government bonds fell to 2009 levels after the central bank sold more than $8 billion in assets in April. . Rose

– China’s share of U.S. government bonds fell to 2009 levels after the central bank sold more than $8 billion in assets in April.

According to the latest data from the Ministry of Finance, China held $757.2 billion in Treasury bonds by the end of April 2025, down from $765.4 billion in March and $784.3 billion in February.

China’s bond holdings are now smaller than the UK’s $807.7 billion, making it the third-largest foreign holder of government bonds after more than 17 years in second place.

China’s massive shedding of Treasuries is likely part of a major overhaul of the country’s financial strategy.

Macro analyst Adam Cobasey notes that China’s bond outflows coincide with an extremely active gold hoarding, which has only intensified since 2022.

China is diversifying its foreign exchange reserves away from the U.S. dollar.

The share of US government bonds in China’s total foreign exchange reserves has fallen by ~15 percentage points since 2016, to ~22% , the lowest level in 15 years.

Over the same period, gold’s share rose by ~5 percentage points to a record 6.8% .

This trend accelerated in 2022, and since then the share of gold in China’s reserves has doubled.

Since then, China has purchased ~200 tons of gold. Gold is now in high demand.

Since 2022, the U.S. Dollar Index (DXY), which measures the strength of the dollar against a basket of other major foreign currencies, has fallen more than 15% , raising doubts about the dollar’s future as the world’s reserve currency.

Last week, Nassim Taleb, author of the book “Black Swan, said that the dollar has already been effectively replaced by gold as the world’s reserve currency. Taleb said,

“You can see the accumulation of gold in reserves and the behavior of gold over the last 12 months. And it didn’t start with Trump’s policies. Of course, it started with Biden when he froze the accounts of people connected to Putin, and of course, thinking that would be the end of it, people not connected to Putin decided to stay out of the euro and the dollar.