Foreign Central Banks Reduce U.S. Treasury Holdings Amid Economic Strain

Foreign central banks have reduced their holdings of U.S. Treasuries to the lowest level since 2012 to support their economies and currencies during the ongoing conflict in Iran. According to BlockBeats, the value of Treasuries held by official institutions at the Federal Reserve Bank of New York has decreased by $82 billion since February 25. Some central banks have intervened in foreign exchange markets to bolster their national currencies, often involving the sale of U.S. dollars to address crises. Since February 27, the Central Bank of Turkey alone has sold $22 billion worth of foreign government bonds. Analysts indicate that supply shocks have placed significant pressure on global central banks.