India has $59-bn exposure to US govt debt
BY PTI16 Oct 2013 11:49 PM GMT
PTI16 Oct 2013 11:49 PM GMT
India has an exposure worth $59 billion to the US government securities, amid growing concerns over possible debt default by the world's largest economy.
However, the country's holding of US Treasury securities, which stood at $59.1 billion in July, is the second lowest among the BRICS nations.
India has trimmed its exposure in July compared to holdings worth $61.2 billion seen in June, according to official figures from the treasury department.
In January this year, the exposure of India to these securities stood at $58.5 billion which came down to $56.8 billion in February. In the succeeding month, the same was again trimmed to $55 billion.
As per the data, India started to increase its holdings from April onwards, when it reached $55.8 billion, till June.
In May and June, the exposure stood at $59.9 billion and $61.2 billion, respectively.
Meanwhile, China is the largest holder of American government securities, which stood at over $1.28 trillion followed by Japan with holdings worth $1.14 trillion. These figures are for July.
Among the BRICS (Brazil, Russia, India, China and South Africa), Brazil has the maximum exposure to American government securities after China.
In July, Brazil's holdings were worth $256.4 billion, while that of Russia was at $131.6 billion. The least exposure was for South Africa at $13.8 billion.
The United States, caught in political brinkmanship, is staring at the prospect of defaulting on its debt obligations unless the Congress allows raising the $16.7 trillion debt ceiling.
A few days back, Reserve Bank of India (RBI) governor Raghuram Rajan had ruled out selling out the Indian assets in the US.
'We (India) do not worry about that issue (US defaulting),’ said Rajan. ‘We are not selling our US assets. We are holding on to them,' the RBI Governor added.
'I have to say, whatever default, will be a technical default. We do not expect the US not... from my understanding, because repayments can be prioritised, unless there is a sudden stop and markets stop taking new US debt meant to refinance the old debt there is no chance that the US will default,' he noted.
However, the country's holding of US Treasury securities, which stood at $59.1 billion in July, is the second lowest among the BRICS nations.
India has trimmed its exposure in July compared to holdings worth $61.2 billion seen in June, according to official figures from the treasury department.
In January this year, the exposure of India to these securities stood at $58.5 billion which came down to $56.8 billion in February. In the succeeding month, the same was again trimmed to $55 billion.
As per the data, India started to increase its holdings from April onwards, when it reached $55.8 billion, till June.
In May and June, the exposure stood at $59.9 billion and $61.2 billion, respectively.
Meanwhile, China is the largest holder of American government securities, which stood at over $1.28 trillion followed by Japan with holdings worth $1.14 trillion. These figures are for July.
Among the BRICS (Brazil, Russia, India, China and South Africa), Brazil has the maximum exposure to American government securities after China.
In July, Brazil's holdings were worth $256.4 billion, while that of Russia was at $131.6 billion. The least exposure was for South Africa at $13.8 billion.
The United States, caught in political brinkmanship, is staring at the prospect of defaulting on its debt obligations unless the Congress allows raising the $16.7 trillion debt ceiling.
A few days back, Reserve Bank of India (RBI) governor Raghuram Rajan had ruled out selling out the Indian assets in the US.
'We (India) do not worry about that issue (US defaulting),’ said Rajan. ‘We are not selling our US assets. We are holding on to them,' the RBI Governor added.
'I have to say, whatever default, will be a technical default. We do not expect the US not... from my understanding, because repayments can be prioritised, unless there is a sudden stop and markets stop taking new US debt meant to refinance the old debt there is no chance that the US will default,' he noted.
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