India Maintains U.S. Treasury Holdings Amid Forex Reserve Fluctuations

India's central bank governor, Sanjay Malhotra, clarified on Friday that the country has not sold its U.S. Treasury holdings. According to Jin10, Malhotra addressed the media following a monetary policy conference, stating, "Our foreign exchange reserves have decreased, leading to changes in all holdings. These fluctuations are disclosed daily or weekly, but there is no reduction in U.S. Treasury holdings." Data released by the U.S. government in January indicated that India's long-term U.S. Treasury holdings fell to $174 billion by November, marking a five-year low and a 26% drop from the 2023 peak. This reduction occurred as the Reserve Bank of India intensified efforts to support the weakening rupee. India's move to reduce U.S. debt holdings comes amid a broader trend of major economies gradually withdrawing from the world's largest bond market, driven by growing concerns over the "American exceptionalism" narrative. Malhotra's comments coincided with U.S. President Donald Trump's decision to lower tariffs on Indian goods from 50% to 18%.