Iraq has dropped out of the list of the top 20 holders of US Treasury securities, despite holding $32.6 billion in 2023. The latest data from the US Treasury Department, released on Sunday, confirmed this shift.
Japan remains the largest foreign holder of US Treasury securities, with a total of $1.059 trillion. China follows with $759 billion, while the United Kingdom ranks third with $722 billion. Luxembourg secured fourth place, holding $424 billion. Meanwhile, the Cayman Islands and Canada recorded $419 billion and $379 billion, respectively.
Iraq’s position in the rankings has changed significantly. In 2023, it was among the major holders, but the latest figures show its absence from the top 20. This decline marks a significant shift in Iraq’s financial strategy regarding US Treasury securities.
Saudi Arabia remains the only Arab country in the top 20, ranking 17th with $137.5 billion in US Treasury securities. The report also revealed that total global holdings reached $8.513 trillion last year.
Many countries are adjusting their strategies for holding US Treasury securities. Shifts in global economic conditions, changing interest rates, and financial policies influence these rankings. Iraq’s declining position reflects broader financial decisions aimed at diversifying reserves.
Iraq’s strategy regarding US Treasury holdings will be closely monitored in the coming months. While the country has stepped back from the top 20, its future approach to global financial investments could evolve based on economic priorities.
