The UAE and Saudi Arabia's holdings of US Treasuries rose in July, as total foreign holdings hit an all-time high, according to Treasury Department data released on Thursday.
Foreign holdings of Treasuries soared to $9.159 trillion in July, up from $9.126 trillion in June. It is the third straight month foreigners' holdings had hit an all-time high.
Total foreign holdings of Treasuries were up about 8.7 per cent compared to the previous year.
UAE holdings of Treasuries reached $107.8 billion in July, an increase of more than 10 per cent from June. On an annual basis from July, the UAE's holdings are up almost 56 per cent, Treasury Department data showed.
Saudi Arabia's holdings slightly increased to $131.7 billion in July from $130.6 billion in june.
Japan, the largest foreign holder of Treasuries, increased its stockpile to $1.15 trillion. Britain and France increased their holdings to $899.3 billion and $392 billion, respectively.
Those gains offset a drop in China's holdings, from $756.4 billion in June to $730.7 billion in July. Belgium's holdings also fell, by about $5 billion to $428.2 billion in July.
India and Canada had saw a dip in Treasury holdings.
US President Donald Trump's tariff policy, which has increased import prices for goods outside the US, had brought into question the foreign demand for Treasuries this year. US Treasury debt is considered to be a safe-haven asset during times of global volatility.
Foreign investors hold about 30 per cent of all US Treasuries.
