China has sold US Treasury and agency bonds worth $74 billion in seven months.

 BRICS member China has sold a large amount of US Treasury and agency bonds worth $74 billion in seven months. It is distancing itself from the US economy and instead accumulating tonnes of gold in its reserves. The dumping of US Treasury and agency bonds from China is in line with the BRICS agenda of de-dollarisation . BRICS has been the largest buyer of gold since 2022 and is replacing US Treasuries with the precious gold in its reserves. According to the People's Bank of China (PBOC), the country has 2,250 tonnes of gold in 2024. This is about $159 billion worth of gold in China's reserves.

 China has sold a large amount of US Treasury and agency bonds worth $74 billion in seven months. In the first quarter of 2024 alone, China sold US Treasury and agency bonds worth $53.3 billion.

 While BRICS is moving ahead in its de-dollarisation drive, the sale of US Treasuries is a matter of concern.  And IMF has also warned that the way America is printing dollars, it is inviting a very big economic recession in the future because for the time being, the way America is printing dollars, it is strengthening its economy and in comparison to it, the currency of other countries is continuously falling. We are seeing the effect of this that many countries are now moving away from the dollar and instead prefer to trade in their local currency. The biggest example of this is India and China. These countries trade with many countries in their local currency, but if we look at China in comparison to India, then it is taking a very aggressive step towards de-dollarisation.

 How will the BRICS currency affect the dollar? 

As we all know that very soon the BRICS countries are going to launch their own currency which is being called "R5" for the time being. If this currency is made soon, then it will cause a huge economic loss to the US and the dollar will also be hurt a lot.

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