Shafaq News/ Iraq has pared down its holdings of U.S. Treasury Bonds, curtailing the value by more than $6 billion during the first quarter of 2023, data by the U.S. Department of the Treasury showed on Sunday.
The treasury's most recent tables demonstrated that this strategic reduction in bond holdings, spanning from January to April, positions Iraq as the 36th nation among a roster of 38 states holding a significant amount U.S. Treasury bonds.
Iraq's holdings demonstrated a pattern of stepwise descent during the period under review. From an initial strength of $41.2 billion in January, the holdings witnessed a marginal contraction to $40.7 billion in February, further squeezing to $39.3 billion by March, and ultimately dropping to $34.8 billion by the end of April.
By comparison, Iraq's portfolio of U.S. Treasury bonds in January of the preceding year, 2022, stood at a slightly more robust $40.8 billion, reflecting an oscillating trend within the nation's investment approach towards U.S. reserves.
The Treasury's data places Iraq as the fourth Arab state with most exposure to U.S. treasury bonds, following Saudi Arabia, the United Arab Emirates, and Kuwait in the hierarchy of holders of U.S. Treasury bonds.
The recalibration of Iraq's investment policy portends intriguing implications for the nation's fiscal dynamics and its wider economic orientation under the government of Prime Minister Mohammad Shia al-Sudani. This pivot could be construed as an effort by Iraq to introduce greater diversity into its foreign reserves in compliance with the government's economic policies.